First Abu Dhabi bank finalises $650m sukuk

Bonds_newspaperThe UAE’s largest bank, First Abu Dhabi Bank (FAB), has issued a $650 million, five-year sukuk. The final price was registered as 95 basis points above midswaps, stated the bank. The bonds were listed in London with a coupon of 3.625% while total demand from investors exceeded $1.3 billion. The bank, which was formed in July 2016 from the merger of First Gulf Bank and National Bank of Abu Dhabi, is also expected to enter Saudi Arabia’s banking market some time in 2018 having applied for a commercial banking licence, according to the bank’s group head of subsidiaries, Karim Karoui. In early February, FAB was given regulatory approval to conduct arranging and advising activities in Saudi Arabia’s securities market. Plans to issue any further sukuk or Islamic bonds will depend on market conditions, said FAB’s group chief financial officer James Burdett. ©2018 funds globla mena

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