GulfBase Live Support
Leave a message and our representative will contact you soon
20/06/2020 11:26 AST
Leading UAE banks have come to the bond market, and they are getting a warm response.
Sharjah Islamic Bank priced its $500 million 5-year sukuk at LIBOR plus 285 bps, and received more than $3.4 billion in orders. The bank tightened the spread after it gave an initial price guidance of 285-290 basis points over mid-swap rate, a proof of strong demand.
Leading the Sukuk issuance resurgence is DIB, which listed its sukuk today on Nasdaq Dubai. DIB’s was the first international sukuk issuance by a Gulf bank since the COVID-19 pandemic and the fall in oil prices hit Gulf economies.
The overall participation for the sukuk was good, and getting oversubscribed 4.5 times.
A majority of the funds from these sukuk’s will be used for recapitalization proposes and support the fragile state of SMEs.
The banking sector is likely to take a substantial hit this year on growth, owing to the requirement for increased provisioning ratios.
But these deals should inspire more confidence among other UAE banks with sound fundamentals to tap the sukuk market. Abu Dhabi’s FAB has just issued a 5-year 1.4 billion Chinese yuan bond, for which it got offers worth 1.6 billion Chinese Yuan. The bank also raised a 750 million Hong Kong dollar green bond in Hong Kong.
Emirates REIT hits a low
Looking at specific movement in secondary bond markets, Emirates REIT ‘s sukuk has been in the news. Price of the sukuk in the secondary market tanked from levels of since mid-March.
Various factors, including cyclical nature of UAE’s real estate market as well as the REIT not paying interim dividends, contributed to the current price fall. The REIT also blamed elements for circulating rumors and cause the decline in foreign ownership.
Emirates REIT has reached its lowest level of non-GCC ownership since the IPO, at 29 per cent. In light of continued market volatility, Emirates REIT has now decided to report its revenues and NAV on a quarterly cycle basis.
Gulf News
Ticker | Price | Volume |
---|
ADX 4,830.22
29.32 (0.61
DFM 2,840.89
-6.25 (-0.22
Ticker | Price | Change |
---|---|---|
EIB | 10.00 | 0.00 (0.00 |
EMIRATESNBD | 9.20 | -0.18 (-1.92 |
EMAAR | 5.10 | -0.02 (-0.40 |
EMAARMALLS | 2.05 | 0.00 (0.00 |
DIB | 5.01 | 0.01 (0.20 |
06/08/2020
The stock markets in the UAE and GCC were in a tug-of-war state as investors weighed positive news on the economic front and a ‘catastrophic’ overnight explosion in Lebanon that killed at least 100.<
Gulf News
06/08/2020
GCC equity markets staged a strong recovery in the latter part of 2Q20, reversing a large part of the prior losses induced by the coronavirus and its associated lockdowns and restrictions. The recove
The Peninsula
05/08/2020
The MSM 30 Index closed the week up by 0.12 per cent despite lower volume and turnover as compared to the previous week. Shariah index was down by 0.07 per cent. The turnover and volumes were lower t
Oman Daily Observer
05/08/2020
Abu Dhabi Securities Exchange (ADX) announced on Tuesday that it has listed $4 billion Fixed Rate Notes issued by MDGH GMTN B.V. and guaranteed by Mamoura Diversified Global Holding (MDGH).
The Gulf Today
18/06/2020
Domestic institutions’ strong penchant for buying Wednesday extended the bullish run on the Qatar Stock Exchange for the second straight session as its key index surpassed the 9,200 level.
Gulf Times