Aiming to diversify its funding base and tenors, Al Hilal Bank has issued a USD 100 million private placement Sukuk. This is the third issuance under Al Hilal Bank’s USD 2.5 billion Euro Medium Term Note (EMTN) programme. The two-year USD 100 million RegS floating rate Sukuk was priced at three-month LIBOR + 90 bps. The deal was settled on 14 August 2017. As a progressive Islamic bank providing financial services for individuals and businesses primarily in the United Arab Emirates (UAE); 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 USD 500 million Sukuk, due in October 2018 and registered on the Irish Stock Exchange. The second issuance was a USD 225 million 2.7 year private placement due in January 2019 and was a landmark deal recognized for being the first ever issuance of a private placement Sukuk by a UAE financial institution.
Regarding 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.”
