National Bank of Abu Dhabi says it will return to Malaysian credit markets this month as it notes improving outlook for Islamic finance markets.
NBAD takes venture back to Malaysia
NBAD said yesterday that it would resume its Islamic bond programme in Malaysiaand would soon launch a 10-year sukuk issuance worth 500 million Malaysian ringgit (Dh587.7m).
Mahmood al Aradi, the general manager for financial markets at NBAD, told Bloomberg: "December is normally a challenging issuance window but the market conditions and demand for our name remain vibrant.
"It's an opportunity for us to price and execute swiftly."
NBAD also issued a 500m ringgit sukuk in June. Emmanuel Volland, a credit analyst at Standard and Poor's, said: "NBAD has been trying to diversify its funding for the past year in various markets."
Abu Dhabi's banks were resuming efforts to raise money through longer-dated bonds, a campaign that stalled with the onset of the global financial crisis.
"Apparently a window of opportunity has been open for the past few months and several of the top-tier banks have been trying to benefit," Mr Volland said.
NBAD's debt is forecast to peak at Dh3.4 billion (US$925.7 million) in 2014, according to data from Bloomberg. The bank must finance Dh17.5bn in the next decade, much of it maturing before 2015.