Business | Markets

Al Hilal Bank to meet investors on $500m sukuk

The bond will be issued soon after next week’s roadshow, depending on market conditions

  • Zawya
  • Published: 15:33 September 16, 2013
  • Gulf News

Dubai: (Zawya Dow Jones)-Abu Dhabi’s Al Hilal Bank is meeting with potential investors in Asia, Europe and the Middle East next week as it gears up to sell its inaugural $500 million (Dh1.836 billion) Islamic bond, chief executive Mohammad Berro said on Monday.

The bank is aiming to issue the sukuk to finance growth and broaden its funding sources as part of a $2.5 billion debt-raising program, Berro said on the sidelines of a conference in Dubai. The bond will be issued soon after next week’s roadshow, depending on market conditions, he said.

“The last step before full readiness is the roadshow, and then we will launch as soon as the market permits,” he said.

The five-year sukuk would be the five-year-old Al Hilal’s first. The bank, which is owned by the Abu Dhabi government, does not plan on raising more than $500 million, Berro said, even if a surge of orders eases the way to increase the size of the issue.

Al Hilal’s focus in the coming years will be organic expansion, Berro said, with an emphasis on serving affluent customers with new banking technologies and gaining traction in the market for lending to mid- to large-sized companies.

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