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Adib eyes $750 million from bond sale

Dubai, October 28, 2010

Abu Dhabi Islamic Bank (Adib) may raise up to $750 million from its five-year benchmark Islamic bond sale, two sources said on Thursday, after price guidance was widened to lure more investors to the issue.

Price guidance for the issue, the first under the bank's $5 billion programme, was in the midswaps plus 235 basis points area earlier on Thursday. Initial talk had indicated low 200 basis points over midswaps.

The two market sources said Adib, the second largest Islamic lender in the United Arab Emirates, was eyeing $750 million from the sukuk sale. The book size was about $2 billion, sources said.

Investor feedback on the sukuk was that early price indications had been too tight, according to one analyst research note on Thursday.

Adib mandated Barclay's Capital, HSBC and Standard Chartered for the benchmark sukuk which is due to price on Thursday. Benchmark sized bonds are typically $500 million.

In September, Qatar Islamic Bank raised $750 million from a sukuk issue, helping reopen the regional market and meet strong demand for Islamic paper.

Adib shares closed up 1.3 per cent on Thursday and have gained 25.4 per cent this year.

Last week, the bank reported a 31-per cent rise in third-quarter profits and said it would keep booking provisions amid continued economic weakness. – Reuters




Tags: Dubai | sukuk | bond sale | Abu Dhabi national Bank |

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