Noor Bank Successfully Issues $500 Million Sukuk
Noor Bank, one of the UAE’s leading Shari’a compliant banks, has successfully priced its US$500 million sukuk issuance with a five-year tenor on the back of a strong demand from global investors for the bank’s credit.
The benchmark-sized, senior unsubordinated sukuk with a wakala structure was priced with a profit rate of 4.471 per cent, equivalent to five-year mid-swaps plus 165 bps. Initial pricing guidance of 175 bps area over mid-swaps was given earlier on Tuesday with the strong order book enabling final pricing to tighten.
The issuance, which matures in April 2023, was oversubscribed 2.1 times, receiving orders of US$1.07 billion from 50 bids across a diverse group of investors that included one third from outside the Middle East.
Speaking on Tuesday after the transaction closed, following a roadshow that included Singapore, Dubai, Frankfurt and London, John Iossifidis, Chief Executive of Noor Bank, said: “The order book and pricing of our latest transaction demonstrates the confidence that the wide array of global investors has placed in our future growth strategy and the management who would implement that strategy. That Noor Bank was able to achieve this in the face of relatively tough market conditions and heavy competing supply, including two jumbo sized deals by GCC sovereign issuers, is testament to the recognition and strength of our brand.
“Issuing this sukuk is a significant move for us as we expect it to provide strong support to our financing objectives, in line with our three-year strategy. Moreover, it will help us to diversify our funding sources.”
Citi, Deutsche Bank and Standard Chartered were the joint global coordinators for this issue. The joint bookrunners were Citi, Deutsche Bank, Dubai Islamic Bank, Emirates NBD Capital, Noor Bank, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank.
The sukuk will be listed on Nasdaq Dubai.
Noor Bank (formerly Noor Islamic Bank) was established in January 2008, in Dubai - United Arab Emirates.
Among the youngest banks in the country, Noor Bank has achieved significant growth in the past 10 years. Today, in 2018, as we continue to grow, we are ranked the 11th largest bank in the UAE in terms of asset size.
Noor Bank is a full-service Shari’a-compliant bank, offering a comprehensive range of products and services - in corporate and personal banking, wealth management, Takaful (Islamic insurance), treasury and trading. We have a presence across the country, at multiple locations in Abu Dhabi, Dubai, Sharjah and Al Ain.
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