Monday November 26, 2012
UAE’s bank issues US$163mil sukuk
ABU DHABI: National Bank of Abu Dhabi (NBAD), the UAE’s largest lender by market value, has issued a RM500mil (US$163mil) Islamic bond or sukuk, its third in the currency.
The 15-year sukuk was issued at a coupon of 4.75% and was the first ever issue of subordinated debt by a non-Malaysian financial institution in Malaysia, the bank said.
NBAD, which recently opened a wholly-owned subsidiary in Kuala Lumpur, issued its first, five-year RM500mil sukuk in June 2010. It issued the second 10-year RM500mil sukuk in December 2010.
”This new issue... reflects the commitment of NBAD to create a yield curve in ringgit to meet the strong investor demand for our credit and fits in very well with our core strategy of diversifying the bank’s funding sources and extending our maturity profile,” Stephen Jordan, NBAD group treasurer said in a statement.
Last month, RAM Ratings reaffirmed NBAD’s long and short-term financial institution ratings, at AAA and P1 respectively.
NBAD said last month it was eyeing the South Korean market as it seeks to expand its presence in Asia. It opened a representative office this year in Shanghai, China, as well as launching the wholly-owned subsidiary in Malaysia. The bank also has a presence in Hong Kong. – Reuters