Latest news with #IslamicBank
Zawya
23-05-2025
- Business
- Zawya
Alinma continues Saudi AT1 splurge: IFR
Alinma Bank became the fourth Saudi Arabian bank in less than a month to issue in the US dollar AT1 market, with its deal coming in line with where the two most recent ones priced. Alinma, which is a publicly listed Islamic bank, though wealth fund Public Investment Fund also owns a 10% share, showed liquidity hasn't dried up despite the supply glut in recent weeks. Its deal on Tuesday came days after Saudi Awwal Bank and Bank Albilad both issued, with Banque Saudi Fransi kicking off this round of supply in late April. With the exception of BSF, the other three were issued in sukuk format. All have come tight, even though secondary market performance hasn't held up, with the deals preceding Alinma trading below par. Against that context, a lead banker said the outcome of the Alinma trade "was strong". As with Awwal and Albilad, Alinma was issuing a perpetual non-call 5.5-year AT1 note. There were subtle differences between the three. Awwal and Albilad were making their debuts; Alinma was returning with its second trade. Alinma and Awwal both had ESG labels – sustainable in the case of Alinma and green for Awwal. Albilad didn't have an ESG label. Also, Awwal's structure was not compliant with AAOIFI standards, so its buyer base was limited as UAE banks were not allowed to participate. In contrast, both Alinma and Albilad were AAOIFI-compliant. Alinma opened books on its deal at the 7% area. But with final orders at over US$1.75bn, the bank was able to print US$500m at 6.5%. The yield was in line with where Awwal and Albilad landed, though size-wise Alinma's deal was smaller, with the other two raising US$650m each. The lead said the bank "didn't push on size" given the tight pricing. He also said the AAOIFI compliance was "less relevant" for demand because of the amount of recent supply. Faisal Ali, senior portfolio manager at Azimut, said the price came in line "with our fair value target". "We were hoping to see some concession on Alinma given elevated supply from the Saudi AT1 space. However, given the demand for high-yield sukuk, the deal got done without the bank leaving anything on the table," he said. He said the bank's credit profile is supported by its stable asset quality combined with high reserves that cover non-performing loans, rising profitability and solid funding and liquidity profile. That credit strength is balanced by the bank's concentrated loan book as well as its funding profile. "The bank has experienced high growth over the last few years, which translates into an unseasoned loan book. Asset quality is likely to weaken going forward, thereby putting some pressure on reserves and capital buffers," he said. Alinma is rated A2 by Moody's and A– by Fitch. Abu Dhabi Islamic Bank, Alinma Capital, Emirates NBD Capital, JP Morgan, Goldman Sachs and Standard Chartered were the lead managers.
Zawya
16-05-2025
- Business
- Zawya
ADIB accelerates clean energy investment to advance net zero goals
Abu Dhabi, UAE: Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has successfully completed its first on-grid solar photovoltaic (PV) system in JAFZA marking a significant milestone in the bank's journey towards greater environmental sustainability and reducing is environmental footprint in line with its net zero plan. The project forms part of ADIB's broader commitment to reducing its environmental impact and supporting the UAE's Net Zero by 2050 strategy, in addition to the bank's own targets to reduce financed emissions by 2030. This initiative also aligns with ADIB's Vision 2035 and its focus on ESG integration across operations. The On-Grid Solar PV project was designed to reduce Scope 2 emissions from facilities building-related emissions by switching to clean, renewable energy, aligning with the goals set during COP28, which call for practical, low-carbon solutions to tackle climate change. This initiative reflects ADIB's Net Zero strategy to reduce emissions and support the UAE's national energy transition. This project is a meaningful step in ADIB's sustainability journey. ADIB is focused on implementing long-term, practical changes that reduce our environmental footprint and enhance operational efficiency. The system is expected to deliver energy performance improvements while reducing reliance on non-renewable power sources, reflecting ADIB's ongoing efforts to support projects that offer both environmental and economic value. ADIB remains committed to exploring sustainability-focused initiatives across its operations and partner with organisations that share its goal of building a more sustainable and resilient future. About ADIB ADIB is a leading bank in the UAE with AED 244 billion in assets. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides Retail, Corporate, Business, Private Banking and Wealth Management Solutions. The bank was established in 1997, and its shares are traded on the Abu Dhabi Securities Exchange (ADX). ADIB has a strong presence in five strategic markets: Egypt, where it has 72 branches, the United Kingdom, Qatar, and Iraq. Named World's Best Islamic Bank by The Financial Times - The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Emirates airlines, Etihad and Etisalat and a wide range of financing products.
