Trading of shares in Abu Dhabi Commercial Bank, Union National Bank and Abu Dhabi Islamic Bank were suspended on Sunday. The shares jumped last week because of renewed speculation that the Abu Dhabi government might engineer a merger between ADCB and UNB, and another between ADIB and Al Hilal Bank. Both moves would be part of an efficiency drive. There was no immediate official statement from the banks, but banking industry sources said the banks were expected to send statements denying that they had plans to merge.
Dubai Duty Free (DDF) has picked Abu Dhabi Commercial Bank, Emirates NBD, and Standard Chartered to arrange a $750 million loan to fund the company’s expansion at the world’s second-busiest airport and improve its capital structure. DDF’s new dollar-denominated transaction will be priced at 225 basis points (bps) over the London interbank offered rate (Libor). This is 25 bps inside the revised pricing on the dollar tranche of the previous loan. No lifespan for the facility, which will be arranged. The loan is structured so that banks can commit to either a conventional tranche or one compliant with Islamic principles.
Tamweel took the decision to delay the sale of a $235 million Shariah-compliant asset-backed securitisation after receiving feedback from the market. It seems that the deal structure was too complex by regional standards, which has only ever seen one previous Islamic asset-backed transaction.
Lead managers on the deal were: Abu Dhabi Commercial Bank, UBS and Emirates NBD.
November 2011 showed a record number of sukuk issues totaling USD 8.86 billion globally, according to data compiled by Zawya Sukuk Monitor. Major launches contain a global seven-year USD 1 billion sukuk sold by Indonesia in the international markets followed by a similar seven-year USD 750 billion international sukuk by the Central Bank of Bahrain.
On the corporate level, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank sold five-year USD 500 million international sukuk each. These five issues advanced sukuk issuance to a record in November.
Major announcements of new sukuk were also made in November - some of which might hit the market as soon as December or during the first half of 2012.
Standard & Poor's Ratings Services assigned its 'A' issue rating to the proposed sukuk trust certificates to be launched late November, subject to investor demand, by ADCB Islamic Finance (Cayman) Limited, a special purpose company (SPC) of Abu Dhabi Commercial Bank (ADCB; A/Stable/A-1).
The rating on the five-year US$750 million trust certificates shows ADCB's irrevocable undertaking to purchase the assets held by the issuer at the redemption date of the sukuk.
ADCB has implied that the aim of this sukuk is to enable it to raise funds in accordance with Sharia law, and use them for general funding purposes.
Abu Dhabi Commercial Bank (ADCB) and Talem signed an agreement that give students the right to extended payment loans.
ADCB wants to support every student from the beginning of their education until the end, when they become proffessionals.
The number of projects registered under the Dubai Land Department’s (DLD) Tayseer programme has reached 114 and the first funding agreement under the scheme is expected to be finalised soon.
Until now, seven banks have signed with the DLD for financing under the Tayseer initiative. The banks are: Emirates Islamic Bank, Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Noor Islamic Bank, Mashreq, Dubai Bank and Ajman Bank.
Abu Dhabi Commercial Bank appointed Amr Saad Al Menhali as the new Head of Islamic Banking for the Bank.
In addition to his business role, Amr is also a nominated board member by ADCB for Abu Dhabi Finance (ADF) and Abu Dhabi Commercial Islamic Finance Company (ADCIF).
Islamic bonds, led by securities in the Arabian Gulf, underperformed emerging-market debt in February as spreading unrest across the Middle East caused the biggest monthly rise in yields since May.
Investors are shunning Middle East assets as protests expanded to Oman, Bahrain, Yemen and Libya, holder of the largest proven oil reserves in Africa. Moody’s Investors Service and Abu Dhabi Commercial Bank say Islamic bonds aren’t likely to recover unless demonstrations that have toppled Tunisia’s and Egypt’s rulers and killed hundreds end soon.