Business | Banking
NBAD prices 5-year sukuk at 4.75%
Bond oversubscribed 3.6 times
- Reuters
- Published: 00:00 June 23, 2010
Kuala Lumpur/Abu Dhabi: National Bank of Abu Dhabi (NBAD) has priced its 500 million ringgit (Dh572 million) five-year sukuk at 4.75 per cent, bankers said, as the bank taps investors in the world's biggest Islamic bond market.
The sukuk, which is being sold in Malaysia, was oversubscribed 3.6 times, said state-owned NBAD, the second largest bank in the United Arab Emirates by assets.
Malaysia accounts for 42 per cent of total global sukuk issuance of $19.1 billion last year, Thomson Reuters data showed.
Major investors
Funds accounted for 48.3 per cent of investors, insurance companies 21 per cent, financial institutions 19.9 per cent, government agencies 8.6 per cent and corporates 2.2 per cent, joint lead manager HSBC said.
"NBAD is in the best position among banks in the region to get appetite from investors because of the very low risk profile of the bank," said Sofia Al Boury, assistant vice-president of research at Shuaa Capital.
Royal Bank of Scotland and the investment banking arm of Malaysia's top lender Malayan Banking are also handling the deal.
NBAD said the sale would help diversify its sources of funding.
"We believe this will now open the door for other issuers from our part of the world to tap this unique liquidity pool and strengthen further links that are established with Asian investor base," an NBAD spokesman said.
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