ABU DHABI - Rating agency, Moody’s Investors Service has assigned A1 rating against A awarded by S&P to the $500-750 million Sukuk Trust Certificate being launched by Abu Dhabi Commercial Bank in coming days.Abu Dhabi second biggest lender by assets plans to issue the Islamic notes this week. Earlier, Abu Dhabi’s Union National Bank floated a five-year conventional issue, raising $400 million. In July, First Gulf Bank raised $650 million through a sukuk. The biggest Islamic lender ADIB will kick off road shows on today for a potential dollar sukuk, while another Islamic lender Al Hilal Bank has signalled to tap the market in first quarter of next year.
With so many issues, the bankers say bond rush may raise their costs. Abu Dhabi Commercial Bank may price its five-year dollar-benchmark Islamic bond at 275 to 287.5 basis points above the mid swap rate, says Bloomberg newswire.
In a statement, Moody’s said the proceeds of the ADCB’s sukuk will be used to acquire an ownership interest in a portfolio comprised primarily of real-estate Ijara assets, non-real estate Ijara assets, Salam assets and other Shari’ah compliant assets.
haseeb@khaleejtimes.com
