Sunday 10, September 2017 by Jessica Combes

Al Hilal Bank issues private placement Sukuk under Euro medium term note programme


Al Hilal Bank has issued a $100-million private placement Sukuk in an effort to diversify its funding base and tenors.

This is the third issuance under Al Hilal Bank’s $2.5 billion Euro Medium Term Note (EMTN) programme. The two-year $100 million RegS floating rate Sukuk was priced at three-month LIBOR + 90 bps. The deal was settled on 14 August 2017. As a progressive Islamic bank providing financial services for individuals and businesses primarily in the United Arab Emirates (UAE); Al Hilal Bank is an issuer of choice for many investors with strong long term credit ratings of A1 and A+ from Moody’s and Fitch. 

“We took advantage of the strong demand for high grade paper at attractive market pricing. We are pleased with the outcome and will consider further issuances in line with our funding requirements and as market opportunities arise,” said Alex Coelho, CEO of Al Hilal Bank. 

The first issuance under the EMTN programme was a five-year senior unsecured $500 million Sukuk, due in October 2018 and registered on the Irish Stock Exchange. The second issuance was a $225 million 2.7 year private placement due in January 2019 and was a landmark deal recognised for being the first ever issuance of a private placement Sukuk by a UAE financial institution.



Features & Analyses