Ahli United Bank issues sukuk worth $600mln

The issue was heavily oversubscribed and attracted strong regional and international investor demand

  
A customer walks out from the main entrance to Ahli United Bank's headquarters in Manama October 30, 2013.

A customer walks out from the main entrance to Ahli United Bank's headquarters in Manama October 30, 2013.

REUTERS/Hamad I Mohammed

MANAMA: Ahli United Bank (AUB) Bahrain has announced the issuance of a $600 million five-year fixed-rate senior Islamic sukuk with a coupon of 2.615 per cent per annum.

The issue was heavily oversubscribed and attracted strong regional and international investor demand, resulting in an increase in the issuance size from the original $500m level at launch to $600m, and in a reduction in the final coupon required to 2.615pc per annum.

David O’Loan, deputy group chief executive of treasury and investments at AUB, commented: “We are all extremely pleased with the outcome of this transaction. AUB credentials as a leading regional financial institution with a strong credit profile were well recognised by a wide spectrum of prestigious regional and international investors leading to the success of its inaugural senior sukuk issue.”

HSBC and JP Morgan acted as joint global co-ordinators, along with Bank ABC, Dubai Islamic Bank, Kamco Invest, KFH Capital, Kuwait International Bank, and Mashreq as joint lead managers and bookrunners.

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