Abu Dhabi Islamic Bank (ADIB), a prominent financial institution, has announced the successful completion of the planned redemption of its USD 750 million additional tier-one (AT1) perpetual sukuk on the first call date, September 20, 2023.

These sukuk were initially issued on September 20, 2018, with a profit rate of 7.125 percent. They have now been fully redeemed at the trustee call amount, which is equal to the prevailing face amount of the certificates plus any outstanding payments as of September 20, 2023. Following the redemption, the trading of the certificates on the regulated market of the Irish Stock Exchange has been cancelled.

In July 2023, ADIB successfully raised an additional $750 million through the issuance of perpetual sukuk, maintaining the Group’s optimized capital structure and strong CET1 position.

ADIB, which holds an A2 rating from Moody’s and an A+ rating from Fitch, both with a stable outlook, priced the new perpetual non-call, five and a half-year sukuk at a profit rate of 7.25 percent per annum, payable semi-annually. These recent sukuk are listed and traded on the London Stock Exchange.

The recent issuance received exceptional demand, attracting interest from over 240 global and regional investors. The final order exceeded USD 7 billion, more than 9 times oversubscribed, and the final pricing was 62.5 basis points tighter than the initial pricing thoughts.