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Abu Dhabi / Emirates Business
Al Hilal Bank acquired a Private Placement funding worth USD $225 million under its existing Trust Certificate Issuance Programme of USD$2.5 billion. This is the second tranche under the programme. The first funding secured was worth USD$500 million for five years, and was issued back in 2013.
Al Hilal Bank, PJSC (A1/-/A+) is the only full-fledged Islamic Bank that is wholly owned by the Government of Abu Dhabi through Abu Dhabi Investment Council. It priced a 2.5-year (January 2019) US$225MM RegS floating rate note Sukuk at 3mL+160bps under its USD2.5 billion existing Trust Certificate Issuance Programme on May 31.
This swiftly executed trade comprising a few pre-identified investors, marks the first Islamic Private Placement Sukuk issued by a UAE Financial Institution. This hallmark development also marks the return to senior unsecured dollar Sukuk market since 2013 by any entities out of Abu Dhabi, thus, presents a unique proposition to the investors’ fraternity.
Speaking about the milestone, Khaled Abdulla Alkhoori, CEO, Al Hilal Bank, explained, “We are very pleased to announce this first Islamic private placement in the UAE. Al Hilal bank strategy is to diversify its funding base and tenors. We aim to work towards raising funding for medium term to enhance our funding profile and meet
balance sheet growth targets.”