Abu Dhabi – Mubasher: Abu Dhabi Islamic Bank (ADIB) has secured $750 million in the world’s first dollar-denominated additional tier-one (AT1) perpetual sukuk issued since March 2023, according to a press release.
ADIB priced the five and half-year sukuk at a profit rate of 7.25% yearly. The new sukuk, payable semi-annually, will be listed and traded on London Stock Exchange.
The offering attracted more than 240 global and regional investors with the final order exceeding $7 billion above nine times over-subscribed. The issuance was driven by broad demand across three regions, with final allocations of 83% to MENA, 13% to Europe, and 4% to Asia.
Based on the investor type, “private banks 70%, asset and fund managers 16%, commercial banks 10% and others 4%.”
The sukuk issuance will maintain the group’s optimised capital structure and its solid common equity Tier 1 capital (CET1) position.
HSBC and Standard Chartered Bank acted as joint global coordinators and structuring agents for the sukuk, while ADIB, Citi, Emirates NBD Capital, First Abu Dhabi Bank (FAB), and J.P. Morgan acted as joint lead managers and joint bookrunners.
Nasser Al Awadhi, Group CEO of ADIB, noted: "Demand for this issuance exceeded the initial offer by more than nine times, highlighting the tremendous demand and confidence from global investors in ADIB's asset quality.”
“The overall success of this raise can be attributed to ADIB's clear [environmental, social and governance] (ESG) framework and our strong track record of both growing market share and delivering sustainable returns,” Al Awadhi continued.
In the first quarter (Q1) of 2023, ADIB recorded by 54% higher net profits after Zakat and tax at AED 1.10 billion, compared to AED 715 million in Q1-22.
