UAE:
Abu Dhabi’s Al Hilal Bank has successfully priced its US$500 million
perpetual additional Tier 1 Sukuk issuance. The issuance was priced at
par with a profit rate of 5.50%, representing the lowest coupon ever
achieved by any bank for a US dollar Tier 1 issuance outside of the US
since the year 2008.
In
an emailed statement to Islamic Finance news, Mohamed Jamil Berro, the bank’s
CEO said: “We are pleased that the orderbook achieved a highly
diversified set of investors, allowing us to achieve a balanced
allocation both across geographies and investor types. This successful
transaction has assisted Al Hilal Bank in strengthening its capital
base further in order to accommodate future growth opportunities.”
“The
transaction is further testimony to the confidence that international
investors continue to have in the strength of Al Hilal Bank’s credit,”
highlighted Ahmed Ateeq Al Mazrouei, chairman of the bank.
Al
Hilal is the first bank from the MENA region to issue an additional
Tier 1 offering which includes a contingent Point of Non-Viability
clause. Joint lead managers for this particular issuance included Al
Hilal Bank, Abu Dhabi Islamic Bank, Al Rayan Investment, Citigroup,
Emirates NBD Capital, HSBC, Sharjah Islamic Bank, National Bank of Abu
Dhabi and Standard Chartered Bank.
Marking
the first Tier 1 issuance out of the Middle East since May 2013, the
transaction was nine times oversubscribed and gained orders worth
US$4.5 billion from over 200 investors from the Middle East, Asia and
Europe. It had a diverse geographical distribution: MENA region (40%),
Asia (3%), and Europe (29%). As for the investor type the Sukuk was
allocated to: funds (32%), private banks (31%), banks (29%), and
insurance companies (8%).
Al
Hilal last participated in the Sukuk market in October 2013 with its
inaugural senior Sukuk offering worth US$500 million which was
structured to increase the probability of compliance with Basel III,
the voluntary regulatory standard on bank capital adequacy, stress
testing and market liquidity risk. The bank has been assigned a rating
of ‘A1’ and ‘A+’ by Moody’s and Fitch, respectively.
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.