Abu Dhabi: Abu Dhabi Islamic Bank (ADIB) has achieved the planned redemption of its $750 million additional tier-one (AT1) perpetual sukuk on its first call date, which was September 20, 2023, the lender said in a statement on Friday.
Abu Dhabi Islamic Bank (ADIB) has successfully redeemed its $750 million additional tier-one (AT1) perpetual sukuk on its first call date, which was September 20, 2023.
These sukuk were initially issued on September 20, 2018, at a profit rate of 7.125 per cent. The redemption was made at the trustee call amount, which includes the face value of the certificates and any outstanding payments as of September 20, 2023. Following the redemption, the trading of these certificates on the Irish Stock Exchange was canceled, the lender said in a release on Friday.
In July 2023, ADIB raised an additional $750 million through a new AT1 perpetual sukuk issuance. This move helped maintain the bank’s optimized capital structure and strong CET1 position. The new sukuk has a perpetual non-call, five and a half-year structure, with a profit rate of 7.25 per cent per annum, payable semi-annually. The sukuk is listed and traded on the London Stock Exchange.
The recent sukuk issuance garnered significant demand, attracting interest from more than 240 global and regional investors. The final order exceeded $7 billion, making it oversubscribed by over nine times, and the final pricing was 62.5 basis points tighter than initially anticipated. ADIB holds A2 and A+ ratings from Moody’s and Fitch, respectively, both with a stable outlook.