Friday / February 22.
HomeMiddle EastAbu Dhabi's ADIB says $500m sukuk repaid in full

Abu Dhabi's ADIB says $500m sukuk repaid in full

Abu Dhabi Islamic Bank (ADIB) has announced that it has repaid in full a $500 million Islamic bond or sukuk from its own resources.

The bank said in a statement carried by news agency WAM that the repayment reflected “its strong liquidity position amid difficult market conditions”.

The sukuk matured on November 30. The five-year sukuk, which were listed on the London Stock Exchange, were more than four times oversubscribed when they were launched in 2011 with a 3.78 percent profit rate, ADIB said.

“ADIB’s ability to repay the sukuk from its own resources and without the need for refinancing demonstrates our strong liquidity position, especially in these challenging market conditions,” said Abdul Qadir Khanani, group treasurer at ADIB.

“The repayment of these sukuk shows the deep confidence that investors across a range of geographies have in ADIB and its long-term future. We will continue to explore potential opportunities to expand our funding sources as and when needed in the future,” he added.

In November 2015, ADIB repaid a $750 million sukuk also from its own resources. The 5-year sukuk matured in November 2015 and had a profit rate of 3.74 percent.

In October, ADIB reported nearly flat third quarter net profit, the latest bank in the UAE to suffer from a rise in bad loans as a result of the economic impact of lower oil prices.

Source link