Abu Dhabi, UAE; 13 September 2023: Abu Dhabi Islamic Bank (ADIB), a leading financial institution, provided notice of the full redemption of outstanding certificates of its USD 750 million additional tier-one (AT1) perpetual sukuk issued on 20 September 2018 at a profit rate of 7.125 percent. The redeem, in accordance with the conditions of the Sukuk issuance, will be carried out on the first call date, being September 20, 2023.
The outstanding certificates will be redeemed at the trustee call amount, equal to the prevailing face amount of the certificates plus any outstanding payments as of September 20, 2023. In addition, the admission of the certificates to the official list and for trading on the regulated market of the Irish Stock Exchange will be cancelled upon redemption of the certificates.
In July 2023, ADIB has successfully raised another $750 million additional tier-one (AT1) perpetual sukuk. ADIB, which is rated A2 by Moody’s and A+ by Fitch, in each case with a stable outlook, priced the new perpetual non-call, five and half-year sukuk at a profit rate of 7.25 percent per annum payable semi-annually. The recent sukuk are listed and traded on London Stock Exchange.
The recent issuance was met with exceptional demand, attracting interest from over 240 global and regional investors with the final order exceeding USD 7 billion more than 9 times over-subscribed and final pricing 62.5 bps tighter than the initial pricing thoughts. It was driven by broad demand across three regions and different investor types.
The new sukuk issuance will replace the previous one and will maintain the Group’s optimized capital structure and its strong CET1 position. It was structured to comply with the internationally agreed Basel III regulatory framework, which includes detailed criteria for capital and liquidity.
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