Abu Dhabi: Abu Dhabi Islamic Bank (ADIB) announced today that it has successfully raised $750 million in the world’s first dollar denominated additional tier-one (AT1) perpetual sukuk issued since March 2023.
ADIB priced the perpetual non-call, five and half-year sukuk at a profit rate of 7.25 per cent per annum payable semi-annually. The new sukuk will be listed and traded on London Stock Exchange.
The issuance was met with exceptional demand, attracting interest from over 240 global and regional investors with the final order exceeding $7 billion more than 9 times over-subscribed and final pricing 62.5 bps tighter than the initial pricing thoughts. Additionally, reset spread is 306 bps over US treasury yields, which is 121 bps lower than the previous AT1 sukuk issued by ADIB in 2018.
“We are delighted to receive exceptional interest from a broad range of domestic , regional and international investors, with ADIB’s recent achievement of raising $750 million tier-one perpetual sukuk,” said Nasser Al Awadhi, ADIB Group CEO. “Demand for this issuance exceeded the initial offer by more than nine times, highlighting the tremendous demand and confidence from global investors in ADIB’s asset quality.”
“The sukuk issuance will maintain the Group’s optimized capital structure and its strong CET1 position,” he added.
“The issuance was driven by broad demand across three regions, with final allocations of 83 per cent to MENA, 13 per cent to Europe 4 per cent to Asia,. By investor type, private banks 70 per cent, Asset and Fund managers 16 per cent, commercial banks 10 per cent and others 4 per cent,” the bank said in a statement.
The sukuk issuance will maintain the Group’s optimized capital structure and its strong CET1 position. ADIB’s tier-one perpetual sukuk was structured to comply with the internationally agreed Basel III regulatory framework, which includes detailed criteria for capital and liquidity.