Abu Dhabi royalty-owned company hires two banks to sell 5 year Sukuk bond

By Arya M Nair, Official Reporter
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Sheikh Mohamed Bin Khalid Al Nahyan’s Private Department, which is owned by members of Abu Dhabi’s ruling family, has recruited banks to sell five-year US dollar-denominated Sukuk or Islamic bonds.

Emirates NBD Capital and First Abu Dhabi Bank (FAB) were appointed as worldwide coordinators by the company, which holds a portfolio of mostly residential real estate in Abu Dhabi. According to sources, Abu Dhabi Commercial Bank, Dubai Islamic Bank, and Mashreqbank will join them in scheduling fixed income investor calls.

The two lenders, each majority-owned by the governments of their respective emirates, dominate the UAE’s banking sector. Combined, they account for 50.93 percent of total UAE banking assets which also shows that the pair are the second-and third-largest banks in the Middle East and Africa by assets.

A Sukuk issue under the company’s $1 billion trust certificate issuance program will follow, subject to market conditions.

The private department’s major goal is to manage H.E. Sheikh Mohammed Bin Khalid Al Nahyan’s family’s investments, which are mostly family funds. The private department has a number of properties in prime locations in Abu Dhabi and Dubai.

The department’s strategy aims at contributing to the country’s development by making the best use of the land it has at its disposal for significant projects and increasing customer happiness while increasing return on investment.

Recently, Emirates NBD, the leading banking group in the MENAT (Middle East, North Africa and Turkey) region, brought together cultures and communities to safely share in the true spirit of Ramadan and make a difference through its #FastWithFriends social media challenge and contributed $1.3 million to the Al Jalila Foundation.

Related: Dubai repays $500mn of US dollar-denominated bonds