NBAD launches 500 million Malaysian Ringgit Sukuk

Abu Dhabi, June 24, 2010 (WAM)- The National Bank of Abu Dhabi (NBAD), successfully issued its first Sukuk (Islamic bonds) and first issuance denominated in Malaysian ringgit (MYR).
The groundbreaking issuance is worth 500 million ringgit (US$155.9 million or Dh572.5 million) and is issued under NBAD's MYR MTN programme. The offering received extremely strong investor demand and was oversubscribed nearly four times, showing the appetite of investors for NBAD's credit risk.
The transaction had a strong distribution across a wide investor base with a breakdown of fund managers 48.3%, insurance companies 21%, financial institutions 19.9%, government agencies 8.6%, and other corporations 2.2%.
The 5-year Sukuk has a coupon of 4.75%. HSBC Bank Middle East and Malaysia's Maybank were the joint lead managers and the bookrunners in this transaction. This transaction further diversifies NBAD's funding sources and allows the Bank to tap into a whole new segment of investors.

Until now, NBAD has successfully issued debt under its EMTN platform to raise funds, which has been cost-effective and efficient. However, NBAD's inaugural issue of a Sukuk in MYR shows the Bank's issuance flexibility to meet investors' specific demands. – Emirates News Agency, WAM