Abu Dhabi Islamic Bank (ADIB) has appointed Standard Chartered Bank as the sole global coordinator and sustainability structurer for a new dollar-denominated senior green sukuk offering. ADIB, along with Emirates NBD, First Abu Dhabi Bank, and Sharjah Islamic Bank, will serve as joint bookrunners and joint lead managers for the offering. ADIB has also scheduled a global investor call on Monday, followed by fixed income investor calls and meetings in London on Tuesday.
The sukuk issuance falls under ADIB’s recently published Sustainable Finance Framework, which aims to incorporate ESG risk assessments into the bank’s operations. This move reflects ADIB’s commitment to sustainable finance and responsible banking practices. In July 2023, ADIB successfully issued a $750 million AT1 sukuk on the London Stock Exchange, receiving overwhelming interest with an oversubscription of nine times.
Earlier last month, ADIB announced the planned redemption of its $750 million additional tier-one (AT1) perpetual sukuk. These sukuk were initially issued on September 20, 2018, with a profit rate of 7.125%. The redemption was made at the trustee call amount, including the face value of the certificates and any outstanding payments as of September 20, 2023.
ADIB has also reported strong financial performance for the nine-month period ending in September 2023. Net profit increased by 53% to reach Dh3.75 billion, while revenue grew by 48% to Dh6.7 billion. Earnings per share experienced a 49% climb, reaching Dh0.91. Additionally, total assets increased by 25% to reach Dh184.1 billion, mainly driven by growth in net financing, cash and balances with the central bank, and the investment portfolio.
These recent developments demonstrate ADIB’s strong financial position and its commitment to sustainable finance, making it a key player in the Islamic banking sector. With the support of reputable institutions like Standard Chartered Bank and a proven track record of successful sukuk issuances, ADIB is well-positioned for its upcoming sukuk offering in global markets.
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