Al Hilal Bank debut sukuk oversubscribed
Abu Dhabi, October 7, 2013
Abu Dhabi-based Al Hilal Bank's debut $500 million sukuk was oversubscribed several times and topped $4.75 billion, said a statement from the bank.
The sukuk was issued at par with 3.267 per cent semi-annual profit rate with a spread of 170 bps over the US dollar at 5-year mid swaps (MS), it said.
Al Hilal, Citigroup, HSBC, NBAD and Standard Chartered Bank acted as joint-lead managers and joint bookrunners, with BIBD, Maybank IB, SIB and UNB acting as co-managers, said the statement.
Bookbuilding began on September 29 with the release of initial price thoughts at MS + 190bps area at Middle East open, it said.
On October 1, a final price guidance of MS + 170bps was released to investors and the deal was priced at the final price guidance.
Despite considerable volatility in the international market, Al Hilal was able to take advantage of the resilience of the sukuk market and the strong pent-up demand for quality issuers among Islamic investors to successfully price a transaction, said the statement.
Al Hilal’s senior management team undertook a series of fixed-income investor meetings in key financial centres such as Abu Dhabi, Dubai, Singapore, Kuala Lumpur and London, as part of its marketing strategy.
The geographical distribution of the issue was 37 per cent to the UAE, 21 per cent to the rest of the Middle East, 22 per cent to Asia, 17 per cent to Europe, and 3 per cent to US offshore investors.
Banks subscribed to 48 per cent of the issue while the remaining distribution by investor type was funds 31 per cent, sovereign and supra national agencies 13 per cent, private banks 4 per cent and insurance funds 4 per cent.
The Trust Certificates will be listed on the Irish Stock Exchange under Al Hilal’s $2.5 billion Trust Certificate Programme. - TradeArabia News Service
More Finance & Capital Market Stories
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award
- Alba backs Euromoney forum
- URC bond rating upgraded to stable outlook
- GCC urged to set up onshore financial centres
- Consolidation push paying off for Bahrain banks
- Mubadala to focus more on US, Europe
- Six banks join plan for shared customer data register
- UAE economy grows 4pc in 2013
- Egypt foreign reserves up to $17.3bn
- StanChart opens second branch in Iraq
- Oil below $90 to hit GCC economies
- Payfort offers zero deposit scheme to SMEs
- In a first, NCB Capital names female CEO
- Du enters $1.17 billion financing deals
- Al Salam launches Asian real estate fund