London, UK; 25 July 2023: Abu Dhabi Islamic Bank (ADIB), a leading financial institution in the UAE, celebrated a significant milestone by ringing the market-opening bell today at the London Stock Exchange, commemorating the successful listing of $750 million in the world's first dollar denominated additional tier-one (AT1) perpetual sukuk issued since March 2023.
The market opening ceremony was graced by a senior representative from the UAE Embassy in the UK, along with senior representatives from ADIB, and other distinguished guests including ADIB's Group Chief Executive Officer, Nasser Al Awadhi.
The issuance was met with exceptional demand, attracting interest from over 240 global and regional investors. The final order exceeded USD 7 billion, making it more than 9 times over-subscribed, and the final pricing was 62.5 bps tighter than the initial pricing thoughts.
The overall success of this raise can be attributed to ADIB's robust strategy and good performance, along with a strong track record of expanding market share and delivering sustainable returns. The tier-one perpetual sukuk was structured to comply with the internationally agreed Basel III regulatory framework, which includes detailed criteria for capital and liquidity. The sukuk issuance will maintain the Group's optimized capital structure and its strong CET1 position.
Commenting on the momentous milestone, Nasser Al Awadhi, ADIB Group Chief Executive Officer, said, “The successful issuance and listing of our sukuk was the result of the exceptional interest from a broad range of domestic, regional, and international investors, who showed confidence in ADIB's asset quality, direction, and vision. We were so pleased to see this strong international demand despite the market conditions especially for an AT1 issuance. This has helped us to issue the sukuk at a final pricing 62.5 bps tighter than the initial pricing thoughts.
"The listing on the London Stock Exchange provides us with a globally recognized platform for trading, partnering, and conducting business. This will enable us to reach a wider global audience, furthering our brand and strategic objectives in the international market. Additionally, it enhances our credibility on a global scale, fostering meaningful connections with partners and stakeholders worldwide." He added.
The issuance was driven by broad demand across three regions, with 83% allocated to Middle East and North Africa (MENA), 13% to Europe, and 4% to Asia. Notably, private banks, asset and fund managers, commercial banks, and others were the major investor types.
This successful listing showcases ADIB's pivotal role in driving the continued expansion of Islamic capital markets in the UAE, aligning with the nation's significant growth as a prominent global capital of the Islamic economy. HSBC and Standard Chartered Bank were joint global coordinators, while ADIB, Citi, Emirates NBD Capital, First Abu Dhabi Bank, and J.P. Morgan acted as joint lead managers and bookrunners.