Abu Dhabi government-owned Al Hilal Bank launched its debut $500 million five-year sukuk issue, with the projected pricing much tighter than the initial guidance, a document from lead managers said on Tuesday, indicating healthy demand for the deal.
The transaction is set to price at 170 basis points over midswaps, the document said. Initial price thoughts on the deal, released on Sunday, indicated it would have a spread of 190 bps over the same benchmark.
Orders from investors had reached $2.75 billion, leads said on Monday, prior to the conclusion of roadshows.
The deal for Al Hilal, fully owned by state fund Abu Dhabi Investment Council, is being arranged by Citigroup, HSBC , National Bank of Abu Dhabi and Standard Chartered, along with Al Hilal itself.