Gulf Business Subscribe

NBAD Issues 500m Malaysian Ringgit Sukuk

The 15-year Sukuk is National Bank of Abu Dhabi's third issuance in the South East Asian currency.

By Gulf Business | Finance | Published: 25th November 2012 at 15:19

National Bank of Abu Dhabi (NBAD) has issued a 500 million Malaysian ringgit ($163.4 million) Sukuk, its third issuance denominated in currency, the bank announced in a statement.

The new Sukuk is the first ever issue of a subordinated debt by a non-Malaysian FI in Malaysia.

It was issued for 15 years at a coupon of 4.75 per cent following strong investor demand, the bank said.

HSBC Amanah Malaysia Berhad, Maybank Investment Bank Berhad, Standard Chartered Saadiq Berhad, and National Bank of Abu Dhabi Malaysia Berhad were the joint lead managers.

"This new issue, which also strengthens NBAD's capital levels, reflects the commitment of NBAD to create a yield curve in Malaysian ringgit to meet the strong investor demand for our credit and fits in very well with our core strategy of diversifying the bank's funding sources and extending our maturity profile," said Stephen Jordan, NBAD's group treasurer.

NBAD issued its first ever Sukuk and first issuance denominated in Malaysian ringgit in June 2010. The 500 million ringgit issuance will mature in 2015.

The bank issued its second ten-year 500 million ringgit in December 2010.

"Both issuances received extremely strong investor demand and were oversubscribed," said NBAD.

The bank recently inaugurated its wholly owned subsidiary National Bank of Abu Dhabi Malaysia Berhad (NBAD - Malaysia) in Kuala Lumpur and made Malaysia its regional hub to lead expansion in the country and across Southeast Asia.

Related articles

APICORP, QIB sukuk issues show Gulf bond market power shift

Fund managers say there is still substantial latent demand for Gulf debt but investors would no longer accept tight pricings that prevailed just six months ago


Dubai's Noor Bank Sets Price Thoughts For $500m 5-yr Debut Dollar Sukuk

Initial price thoughts were set in the 140 basis points area over midswaps for the sukuk, which have an agency-based structure known as wakala.


National Bank Of Fujairah Issues Dhs500m Tier 1 Capital

The capital-enhancing issue is a perpetual issue structured to comply Basel III norms, a statement said.


UAE's Sharjah Islamic Bank Prices $500m 5 Year Sukuk - Leads

The bond was priced at a spread of 110 basis points over midswaps and carried a profit rate of 2.843 per cent, the document said.


Subscribe to get a Gulf Business update each day.

By Gulf Business