Abu Dhabi Islamic Bank (ADIB) has been recognized through two prestigious awards for its role in arranging a landmark $3 billion dual-tranche sovereign sukuk issuance for the Republic of Indonesia, including a “green” tranche for financing sustainable projects – the world’s first green sukuk
The transaction, concluded in February 2018 won the International Finance Review (IFR) Asia awards for the Socially Responsible Investing (SRI) Capital Markets issue of the year and Islamic issue of the year.
ADIB acted as a Joint Lead Manager & bookrunner for the dual tranche Sukuk, which included a US$1.25 billion five-year Green Sukuk tranche and a $1.75 billion 10-year Sukuk tranche. Both tranches drew strong demand, with the Green Sukuk sold at a coupon of 3.75 percent, and the 10-year Sukuk sold at 4.4 percent.
“ADIB is expanding its corporate and investment banking business through high profile international mandates, at a time when the global sukuk market is deepening, as governments and companies seek to tap investors that embrace ethical, socially responsible finance and shariah principles,” said Amir Riad, Head Corporate Finance and Investment Banking at ADIB.
Indonesia’s sovereign Green Sukuk hit a “sweet spot”, tapping a significant pool of capital held by investors looking for Shariah-compliant vehicles, and also appealing to ethics-minded investors that were more than willing to finance renewable energy projects. I expect more innovative deals such as this in the coming years.”
ADIB’s other recent deals include acting as a JLM & bookrunner on Senaat debut US$300m 5yr Sukuk, Al Dar US$500m 7yr Sukuk, Tabreed debut US$500m 7yr Sukuk, NMC debut US$400m 5yr as well as ADIB tier-one perpetual sukuk that complies with Basel III regulatory framework.
