Dubai, UAE — Abu Dhabi Islamic Bank (ADIB) Friday announced the successful completion of the planned redemption of its $750 million additional tier-one (AT1) perpetual sukuk on the first call date, which occurred on September 20, 2023.
These sukuk instruments were initially issued on September 20, 2018, carrying a profit rate of 7.125 percent.
ADIB redeemed them at the trustee call amount, equivalent to the prevailing face value of the certificates along with any outstanding payments as of September 20, 2023. The redemption process also led to the cancellation of trading of these certificates on the regulated market of the Irish Stock Exchange.
Earlier in July 2023, ADIB had successfully raised an additional $750 million through the issuance of new additional tier-one (AT1) perpetual sukuk. This move was in line with ADIB’s strategy to maintain its optimized capital structure and bolster its strong CET1 position.
ADIB, boasting a credit rating of A2 by Moody’s and A+ by Fitch, both with a stable outlook, priced the recently issued perpetual non-call, five and a half-year sukuk at a competitive profit rate of 7.25 percent per annum, payable semi-annually. These newly issued sukuk are currently listed and traded on the London Stock Exchange.
The latest sukuk issuance witnessed exceptional demand, garnering interest from more than 240 global and regional investors. The final order exceeded $7 billion, indicating an oversubscription rate exceeding nine times the initial offering, with the final pricing settling 62.5 basis points tighter than the initial pricing thoughts.