ADIB redeems $750 million perpetual Sukuk issued in 2018

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

These sukuks were issued on 20th September 2018 at a profit rate of 7.125 percent and were fully redeemed at the trustee call amount, equal to the prevailing face amount of the certificates plus any outstanding payments as of September 20, 2023.

Upon redemption of the certificates, the trading of the certificates on the regulated market of the Irish Stock Exchange was cancelled. 
In July 2023, ADIB successfully raised another $750 million additional tier-one (AT1) perpetual sukuk maintaining the Group’s optimised capital structure and its strong CET1 position.

ADIB, which is rated A2 by Moody’s and A+ by Fitch, in each case with a stable outlook, priced the new perpetual non-call, five and half-year sukuk at a profit rate of 7.25 percent per annum payable semi-annually. The recent sukuk are listed and traded on the London Stock Exchange.

The recent issuance was met with exceptional demand, attracting interest from over 240 global and regional investors with the final order exceeding USD 7 billion more than 9 times over-subscribed and final pricing 62.5 bps tighter than the initial pricing thoughts.