Al Hilal Bank Raises Private Placement Funding USD 225 Million
Al Hilal Bank acquired a Private Placement funding worth USD 225 Million under its existing Trust Certificate Issuance Program of USD 2.5 Billion. This is the 2nd tranche under the program. The very first financing protected deserved USD 500 Million for five years, and was provided back in 2013.
Al Hilal Bank, PJSC (A1/-/ A+) is the only full-fledged Islamic Bank that is wholly owned by the Government of Abu Dhabi through Abu Dhabi Investment Council. It priced a 2.5-year (January 2019) US$ 225MM RegS drifting rate note Sukuk at 3mL +160 bps under its USD2.5 billion existing Trust Certificate Issuance Program on 31st May.
This swiftly executed trade making up a couple of pre-identified financiers, marks the very first Islamic Private Placement Sukuk released by a UAE Financial Institution. This hallmark development likewise marks the return to senior unsecured dollar Sukuk market considering that 2013 by any entities out of Abu Dhabi, thus, provides a distinct proposition to the investors' fraternity.
Speaking about the turning point, Mr. Khaled Abdulla Alkhoori, CEO, Al Hilal Bank, discussed, "We are extremely delighted to announce this first Islamic private placement in the UAE. Al Hilal bank method is to diversify its financing base and tenors. We aim to work to raising funding for medium term to improve our funding profile and fulfill balance sheet growth targets."
