• 09 Aug

    Abu Dhabi’s Al Hilal Bank issues $100 million private sukuk – sources

    Abu Dhabi government-owned Al Hilal Bank has raised $100 million through a private placement of sukuk, or Islamic bonds, sources familiar with the matter said on Monday. 

    The issue, led by First Abu Dhabi Bank, has a two-year maturity and offers 90 basis points over three-month London Interbank Offered Rate (Libor). 

    Al Hilal Bank did not immediately respond to an email and calls seeking comment. 

    The bank, an Islamic lender, issued a privately placed $225 million sukuk in June last year, describing the deal as the first private placement of sukuk by a United Arab Emirates financial institution and the first senior, unsecured U.S. dollar-denominated sukuk by an Abu Dhabi entity since 2013. 

    That sukuk matures in January 2019, while the new $100 million issue is due on Aug. 14 of the same year. 

    Al Hilal Bank in 2013 established a $2.5 billion sukuk programme, under which it issued – in addition to the privately placed sukuk – a $500 million five-year sukuk. 

    The bank also raised additional capital through a $500 million hybrid Additional Tier 1 sukuk in 2014. 

    Al Hilal is rated A1 by Moody’s and A+ by Fitch. 

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