Abu Dhabi – Mubasher: Abu Dhabi Islamic Bank (ADIB) listed the first USD-denominated green Sukuk in the world on Abu Dhabi Securities Exchange (ADX) on 8 December 2023 and was more than 5 times oversubscribed, according to a press release.
The Sukuk value stood at $500 million, with the issuance being driven by a wide demand across three regions as the final allocations were 78% to MENA, 13% to Europe, and 9% to both Asia and the US.
In terms of investor type, private banks acquired 26%, while 17% was for asset and fund managers, 42% for commercial banks, and 16% for other investing parties.
ADIB Group CEO, Nasser Al Awadhi, said: "The widespread interest from global investors in the Sukuk indicates their confidence in our sustainable finance framework, our financial performance and prudent financial and risk management approach. As a prominent bank in the Emirate, ADIB recognizes the importance of Abu Dhabi’s economic landscape.”
ADIB mandated Standard Chartered Bank as the sole global coordinator and sustainability structure. Meanwhile, the joint lead managers and bookrunners along with ADIB were Emirates NBD, First Abu Dhabi Bank (FAB), and Sharjah Islamic Bank.
Al Awadhi added: “By listing this Sukuk on ADX, we are opening the door for ESG-conscious investors to contribute to the region’s economy in a way that maximises the public benefit. The dual listing is a testament to ADX's leadership and excellence in the region's securities markets.”
Abdulla Salem Alnuaimi, CEO of ADX, said: “As a trusted exchange and investment platform, ADX recognises its role in enabling green finance and supporting investors with financial instruments and services that align with their sustainability objectives.”
Alnuaimi added: “We will continue to actively contribute towards the economic growth and diversification of the Emirate of Abu Dhabi and the UAE and support the UAE’s sustainability commitment.”
It is worth noting that during the first nine months (9M) of 2023, ADIB recorded net profits of AED 3.75 billion, while the basic and diluted earnings per share (EPS) reached AED 0.91.