FAB sells $500m sukuk as Gulf bonds heat up
Banks, corporates and governments in the Gulf region are expected to rely heavily on debt financing this year.
First Abu Dhabi Bank (FAB), the largest lender in the UAE, sold sukuk, or Islamic bonds, worth $500 million on Thursday, as Gulf issuers start tapping debt investors in what is likely to be another record year for regional bonds.
According to a document issued by one of the banks leading the deal and seen by Reuters, the five-year paper offers investors a profit rate equivalent to 90 basis points over mid-swaps.
It was marketed earlier on Thursday with an initial price guidance of 100-105 basis points over mid-swaps.
The issuance, which will be completed later on Thursday, comes on the heels of a $750 million bond sale by rival Emirates NBD, Dubai’s largest bank, on Wednesday - the first public debt issuance from the Gulf region this year.
Banks, corporates and governments in the oil-rich Gulf region are expected to rely heavily on debt financing this year after the coronavirus crisis and lower energy prices squeezed their finances.
The Gulf saw a second consecutive year of record international bonds last year, topping $100 billion, and is likely to notch up another record this year, bankers and analysts have said. — Reuters
Real estate, infrastructure likely to stand out as biggest... READ MORE
Brent, WTI set for weekly gains of about 5 per cent READ MORE
European share markets were set to follow Asia higher. READ MORE
At the interbank foreign exchange market, the Indian unit traded in a ... READ MORE
Dr Nawal noted that mutations are common in SARS-CoV-2 — an RNA ... READ MORE
The UAE's vaccine administration rates are just second behind Israel... READ MORE
Experts studying the data from clinical trials say volunteers who had ... READ MORE
More than 23 million tests have been carried out across the country... READ MORE