ADIB repays USD 500 million Sukuk

Abu Dhabi - MENA Herald: Abu Dhabi Islamic Bank (ADIB) has repaid in full a USD 500 million (AED 1.835 billion) Sukuk from its own sources, reflecting the bank’s financial strength and comfortable liquidity position. The Sukuk matured on 30 November.
The 5-year Sukuk, which was listed on the London Stock Exchange (LSE), was more than 4 times oversubscribed when it was launched in 2011 with a 3.78% profit rate. At the time of issuance the Sukuk was rated A2 by Moody’s and A+ by Fitch, with a stable outlook from both rating agencies. ADIB, Citibank, HSBC, NBAD, Nomura and Standard Chartered Bank were the Joint Lead Managers and Book-runners for the offering.
Abdul Qadir Khanani, Group Treasurer at ADIB commented: “ADIB’s ability to repay the Sukuk from its own resources and without the need for refinancing demonstrates our strong liquidity position, especially in these challenging market conditions. The repayment of these Sukuk shows the deep confidence that investors across a range of geographies have in ADIB and its long-term future. We will continue to explore potential opportunities to expand our funding sources as and when needed in the future.”
Last year, ADIB repaid a $750 million Sukuk also from its own resources. The 5-year Sukuk matured in November 2015 and had a profit rate of 3.745%.
ADIB reported a 2.9% increase in net profit for the first nine months of 2016 to AED 1,498.4 million while increasing total assets to AED 122.6 billion. The bank also added 48,000 new customers during the same period, reflecting the competitive product offering and strong response to its investment in its digital platforms.