Thursday, Nov 08, 2012
DUBAI (Zawya Dow Jones)--Abu Dhabi Islamic Bank (ADIB.AD) is expected to price a benchmark-sized Islamic bond, or sukuk, on Thursday after receiving very strong demand from investors, a person familiar with the deal said.
Orders booked for the hybrid sukuk were in excess of $11 billion as on late Wednesday, the person, who declined to be identified, told Zawya Dow Jones. The profit rate guidance was revised to around 6.50%, from the initial talk of 7% area.
The joint lead managers for the planned issue are ADIB, HSBC, Morgan Stanley, National Bank of Abu Dhabi and Standard Chartered.
ADIB met with investors in Asia, the Middle East and Europe early November in anticipation of a possible sale of "hybrid Tier 1" perpetual instruments denominated in dollars.
In October, bank shareholders approved additional issuances "for the purpose of raising further tier 1 capital to strengthen the bank's capital adequacy ratio," according to a report posted on the Abu Dhabi bourse website. Aggregate total borrowing for this purpose was limited at $2 billion, the report said.
The lender issued a $500 million sukuk last November.
Write to Nikhil Lohade at nikhil.lohade@dowjones.com
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(END) Dow Jones Newswires
08-11-12 0752GMT
