National Bank of Abu Dhabi issues sukuk

National Bank of Abu Dhabi issues sukukThe National Bank of Abu Dhabi (NBAD) has issued sukuk in Malaysia. The worth of the second of this nature is RM 500 million.

The main idea behind this is to provide for the investors' demand which has grown despite the year ending on a very challenging note. Soon after the issuance was done, it got oversubscribed by two times.

NBAD's ringgit medium term notes were issued in that name. One must remember that the second issue was done just months after NBAD's first ever sukuk issuance. The time period for the sukuk is 10-years.

As per the bank, the latest issue has been a hit since there is a strong distribution in terms of wide investor base.

For the fund managers the breakdown is 33 per cent, for insurance firms it is 27 per cent and for the financial institutes it stands at 10 per cent. The corporates are going to get just 30 per cent.

It also said that sukuk is in line with the strict investment guidelines of the Islamic asset management and funds. These are specifically for Asia.