Abu Dhabi bank to issue $1.07b sukuk in Malaysia

FGBAbu Dhabi’s First Gulf Bank, the third-largest bank by assets in the United Arab Emirates, will raise 3.5 billion ringgit ($1.07 billion) with Islamic bonds in Malaysia, according to a statement on March 6 by Malaysia’S credit rating agency RAM Ratings.

The Islamic bond, or sukuk, programme will be issued by the bank’s funding unit, FGB Sukuk Company II Ltd. RAM rated the program ‘AAA’ or Stable on the bank’s size and high likelihood of government support, as the Abu Dhabi ruling family owns 64 per cent of the firm.

First Gulf Bank follows numerous institutions to find funding in Malaysia’s sukuk market, the world’s largest. More than two-thirds of global sukuk issuance in the first half of 2013 took place in Malaysia, followed by Saudi Arabia and the UAE.

“The ratings also incorporate the bank’s excellent profitability, robust capitalisation, expanding franchise and moderate asset quality,” said RAM.

Funds from the programme will go toward expanding the bank’s day-to-day business. RAM did not indicate when the first issuance will take place.



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Abu Dhabi’s First Gulf Bank, the third-largest bank by assets in the United Arab Emirates, will raise 3.5 billion ringgit ($1.07 billion) with Islamic bonds in Malaysia, according to a statement on March 6 by Malaysia'S credit rating agency RAM Ratings. The Islamic bond, or sukuk, programme will be issued by the bank’s funding unit, FGB Sukuk Company II Ltd. RAM rated the program ‘AAA’ or Stable on the bank’s size and high likelihood of government support, as the Abu Dhabi ruling family owns 64 per cent of the firm. First Gulf Bank follows numerous institutions to find funding in...

FGBAbu Dhabi’s First Gulf Bank, the third-largest bank by assets in the United Arab Emirates, will raise 3.5 billion ringgit ($1.07 billion) with Islamic bonds in Malaysia, according to a statement on March 6 by Malaysia’S credit rating agency RAM Ratings.

The Islamic bond, or sukuk, programme will be issued by the bank’s funding unit, FGB Sukuk Company II Ltd. RAM rated the program ‘AAA’ or Stable on the bank’s size and high likelihood of government support, as the Abu Dhabi ruling family owns 64 per cent of the firm.

First Gulf Bank follows numerous institutions to find funding in Malaysia’s sukuk market, the world’s largest. More than two-thirds of global sukuk issuance in the first half of 2013 took place in Malaysia, followed by Saudi Arabia and the UAE.

“The ratings also incorporate the bank’s excellent profitability, robust capitalisation, expanding franchise and moderate asset quality,” said RAM.

Funds from the programme will go toward expanding the bank’s day-to-day business. RAM did not indicate when the first issuance will take place.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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