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Tue 12 Oct 2010 05:48 AM

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Abu Dhabi Islamic Bank said to plan sukuk sale, hires managers

HSBC Holdings, Standard Chartered and Barclays will manage the sale

Abu Dhabi Islamic Bank said to plan sukuk sale, hires managers
SUKUK SALE: ADIB has hired three banks to manage and plan its sukuk sale. (ITP Images)

Abu Dhabi Islamic Bank, the UAE's second biggest lender complying with Shariah, hired three banks to help sell bonds, according to two bankers familiar with the plan.

HSBC Holdings, the second biggest underwriter of sukuk this year, Standard Chartered and Barclays will manage the sale, said the bankers, who declined to be identified because the terms haven’t been made public. ADIB may start meeting investors this month, one of the bankers said.

Bond sales from the Gulf region have picked up since state controlled Dubai World in September reached an agreement with 99 percent of its creditors to alter the terms on $24.9 billion of debt.

Dubai Electricity & Water Authority plans to meet fixed income investors starting today, a banker said last week. The Dubai government last month raised $1.25 billion in its first bond sale since the Dubai World debt crisis.

ADIB has a $5 billion sukuk trust certificate program, according to a base prospectus dated July 8 posted by the bank on the London Stock Exchange’s website. The bonds will be issued from “time to time” in any currency, it said.

ADIB’s five year, floating rate sukuk traded at 98.67 cents on the dollar on Oct 8, close to its highest level in a year, prices on Bloomberg show. The bank has an A2 credit rating, the sixth highest investment grade, at Moody’s Investors Service.

A Dubai based official for HSBC declined to comment when contacted by Bloomberg News on Monday. Barclays and Standard Chartered didn’t reply to emails seeking comment. Officials at Abu Dhabi based ADIB didn’t immediately reply to phone calls seeking comments.