Mubadala closes first sukuk this year: Abu Dhabi sovereign wealth fund Mubadala’s debt issuing arm Mamoura Diversified Global Holding (MDGH) has sold USD 1 bn 10-year sukuk sale, Reuters reports, citing fixed income news services IFR. The sovereign wealth fund priced the bonds at 60 bps over US Treasuries, tightened from initial price guidance of 95 bps over US Treasuries after receiving some USD 4.8 bn in orders.

Background: Mubadala last issued sukuk in October 2024 valued at AED 1 bn.

ADVISORS- HSBC, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, JPMorgan, and Mizuho were tapped as joint global coordinators, and are joined by Abu Dhabi Islamic Bank, Barclays and Credit Agricole as bookrunners and joint lead managers. Emirates NBD and ICBC are passive bookrunners.

IN OTHER DEBT NEWS-

SIB’s USD 500 mn sukuk draws USD 1 bn in orders: Sharjah Islamic Bank’s (SIB) benchmark USD 500 mn additional tier one (ATI) sukuk offering attracted over USD 1 bn in orders, Zawya reports. The yield on the six-year perpetual non-call issuance was tightened to 6.125% from initial price thoughts of 6.5% earlier in the day. The Mudaraba offering will be listed on Euronext Dublin and Nasdaq Dubai on 4 June and is part of its USD 500 mn ATI capital certificates program.

ICYMI- SIB had been sounding out investors for the issuances. The offering comes as the lender, which holds an A- rating from S&P and a BBB+ rating from Fitch, looks to shore up its capital base.

ADVISORS-The bank tapped our friends at Mashreq and HSBC along with Arqaam, Dubai Islamic Bank, Emirates NBD Capital, FAB, Kamco Invest, and Standard Chartered as joint lead managers and bookrunners on the transaction.

ALSO- ADCB closes its second Formosa bond sale this year: ADX-listed Abu Dhabi Commercial Bank (ADCB) sold USD 600 mn worth of five-year floating Formosa bonds, in line with final price guidance of 100 bps over the secured governing financing rate (SOFR), Zawya reports. Proceeds from the sale, which kicked off earlier this week, will be used to meet the bank’s general corporate needs and to finance or refinance eligible green loans. The paper will be listed on the Taipei Stock Exchange and the London Stock Exchange.

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