ADIB redeems $750 million Sukuk issued in 2018

Abu Dhabi Islamic Bank (ADIB), a leading financial institution, announced that it has successfully completed the planned redemption of its $750 million additional tier-one (AT1) perpetual sukuk on the first call date, September 20, 2023.

These sukuks were issued on 20th September 2018 at a profit rate of 7.125 per cent and were fully redeemed at the trustee call amount, equal to the prevailing face amount of the certificates plus any outstanding payments as of September 20, 2023.

Upon redemption of the certificates, the trading of the certificates on the regulated market of the Irish Stock Exchange was cancelled. In July 2023, ADIB successfully raised another $750 million additional tier-one (AT1) perpetual sukuk maintaining the Group’s optimised capital structure and its strong CET1 position.

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 per cent per annum payable semi-annually. The recent sukuk are listed and traded on the 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 $7 billion more than 9 times over-subscribed and final pricing 62.5 bps tighter than the initial pricing thoughts.

Abu Dhabi Islamic Bank reported a growth of 61 per cent in net profit in the first half of 2023 to Dhs2.3bn ($626m) from Dhs1.4 billion ($381m) last year, according to the bank’s H1 2023 financial results.

Net profit for Q2’23 reached Dhs1.2 billion with 68 per cent growth versus Q2’22.