First Abu Dhabi Bank (FAB), the largest lender in the United Arab Emirates, has raised $850 million in Islamic bonds, a document issued by one of the banks leading the deal showed on Tuesday.
The five-year sukuk offer buyers 130 basis points over mid-swaps, 20 basis points below the indicative price FAB proposed when it started marketing the notes.
FAB, rated Aa3 by Moody’s and AA-(minus) by S&P and Fitch, is the first issuer in the Gulf to tap the international sukuk market this year.
S&P’s global head of Islamic finance, Mohamed Damak, said that sukuk issuance out of the Gulf is expected to increase this year if Brent oil prices fall below S&P’s forecast of $55 a barrel over a sustained period. Brent crude oil futures were at $60.15 a barrel at 1621 GMT on Tuesday.
FAB’s debt sale was expected to be set at $750 million but was later increased by $100 million as orders climbed above $2.8 billion during the day.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, KFH Capital, NCB Capital Company, Sharjah Islamic Bank and Standard Chartered Bank have been mandated to arrange the issuance.
Source Reuters