UAE: Abu Dhabi Islamic Bank successfully issues $500m green senior sukuk

UAE: Abu Dhabi Islamic Bank successfully issues $500m green senior sukuk

Image: ADIB

Abu Dhabi Islamic Bank (ADIB) has successfully raised $500m via a green sukuk offering.

The bank priced the five-year senior sukuk rated A+ by Fitch at a profit rate of 5.695 per cent per annum payable semi-annually.

The new sukuk will be listed and traded on London Stock Exchange’s International Securities Market and Sustainable Bond Market.

The issuance attracted interest from more than 100 global and regional investors with the final order book closing at $2.6bn, representing an oversubscription rate of 5.2 times.

Sukuk proceeds will fund green projects

The bank intends to allocate an amount equal to the net proceeds of this issuance to fund eligible green projects to accelerate climate transition, which may include the financing or refinancing of green projects as well as financing customers for eligible green projects as described under the eligibility criteria in its sustainable finance framework.

Nasser Al Awadhi, ADIB group CEO, said: “We are thrilled to be the first financial institution in the world to issue the first USD-denominated green sukuk, which builds on ADIB’s efforts to address climate change and to advance sustainable solutions that protect the environment and help facilitate a transition to a low-carbon economy.

“We have received exceptional interest from a broad range