Al Hilal Bank issues $100m private placement Sukuk

11/09/2017 05:51 AST

Aiming to diversify its funding base and tenors, Al Hilal Bank has issued a $100 million private placement Sukuk. This is the third issuance under Al Hilal Bank’s $2.5 billion Euro Medium Term Note, EMTN, programme.

The two-year US$100 million RegS floating rate Sukuk was priced at three-month LIBOR + 90 bps. The deal was settled on 14th August, 2017. As a progressive Islamic bank providing financial services for individuals and businesses primarily in the United Arab Emirates, Al Hilal Bank is an issuer of choice for many investors with strong long term credit ratings of A1 and A+ from Moody’s and Fitch.

The first issuance under the EMTN programme was a five-year senior unsecured $500 million Sukuk, due in October 2018 and registered on the Irish Stock Exchange. The second issuance was a $225 million 2.7 year private placement due in January 2019 and was a landmark deal recognised for being the first ever issuance of a private placement Sukuk by a UAE financial institution.

Speaking on the Private Placement issuance, Alex Coelho, CEO of Al Hilal Bank, commented, “We took advantage of the strong demand for high grade paper at attractive market pricing. We are pleased with the outcome and will consider further issuances in line with our funding requirements and as market opportunities arise.”

Meanwhile, Al Hilal Bank has announced a new senior appointment at the leadership team level; Jasem AlHosani as the Head of Compliance, to further drive the Bank’s success and its future growth plans.

Alex Coelho, Chief Executive Officer of Al Hilal Bank, stated: “Leading organizations are under an obligation to renew themselves in order to stay ahead. With established professionals who have a wealth of experience in the financial sector, Al Hilal Bank will explore and reach new heights.”

He added: “The appointment of the new team member is in line with the strategic objectives of Al Hilal Bank. We strongly believe that his expertise, accumulated from the banking sector, will further enhance the Bank’s position as a leading financial institution in the UAE and beyond.”

The Gulf Today