Bloomberg provides an overview of which lenders are in merger talks and where those conversations are at. Talks are underway in Abu Dhabi for a possible tie-up between Abu Dhabi Islamic Bank with First Abu Dhabi Bank, a merger that would create one of the Middle East’s largest lenders. Saudi Arabia’s biggest lender National Commercial Bank said at the end of 2018 that it’s starting initial talks with Riyad Bank. This deal would form the Gulf’s third-biggest lender. Dubai’s largest bank Emirates NBD is buying Turkey’s Denizbank for $2.8 billion. The three-way merger of Abu Dhabi Commercial Bank, Union National Bank and Al Hilal creates the fifth-biggest lender in the Gulf.
First Abu Dhabi Bank has appointed banks to lead a U.S. dollar-denominated sukuk issue. Citi, First Abu Dhabi Bank, KFH Capital, NCB Capital and Standard Chartered will lead the deal, which has a five-year tenor. The sukuk is expected to be of benchmark size, which generally means upwards of $500 million. The bank, formed by a merger of National Bank of Abu Dhabi and First Gulf Bank, is tapping the sukuk market to diversify its funding sources. The planned debt sale would be part of the bank's $2.5 billion sukuk programme.