Al Hilal Bank to Issue Sukuk
Al Hilal Bank, the state owned bank of Abu Dhabi, is planning to issue a debut Islamic bond valued at US$500 million to be done in the third quarter of 2013. The move is expected to fund growth and diversify its balance sheet according to its CEO.
CEO Mohamed Berro, "The sukuk was planned last year but we believe third quarter this year is the right time for our first Islamic bond. It's a mix of getting some funding and benchmarking the bank in the comparison to its peers on the debt market."
He added that the bank is expecting a credit rating in the next two to three months. The issue would be managed by the National Bank of Abu Dhabi and Standard Chartered Bank.
The bank was established in 2008 and was subscribed to a US$5 billion bond under the Dubai government's bond programme. According to its annual report, the bank had AED28.3 billion in assets as of 2011.