It is reported that the issuance was oversubscribed to more than six times. Also, orders were received in excess of $45 billion from 100 new accounts, media reports said. It appears that the bond was highly popular among international investors and it carries a 30-year duration. These investors account for 98 percent of the tranche’s final geographical allocation, media reports said.

It demonstrates investor trust in ADX. The bonds are part of Abu Dhabi government’s strategy to enhance capital structure on the back of maintaining credit returns and exploring various funding sources.

The emirate has joined its Middle Eastern peers in selling foreign bonds. Angad Rajpal,  head of fixed income at Emirates NBD Asset Management in Dubai, told the media, “Qatar and Abu Dhabi were obvious candidates to open the floodgates. Given expectations for a slow recovery in the second half of the year, these issuers have probably established that this is the most conducive window to issue in.”

Abu Dhabi received AA by S&P Global ratings and it appeared to a level higher than Qatar. Last October, Abu Dhabi issued a $10 billion multi-tranche bond and it received a similar response from international investors. This points to investor confidence in emirate’s bonds issuance, media reports said.

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Its $7 billion bond comprises three tranches. The first is $2.5 billion for 5-year notes which will mature in 2025. The second is $1.5 billion for 10-year notes to mature in 2030 and the third is $3 billion for 40-year notes to mature in 2060, media reports said.

The Kingdom has followed its Middle Eastern peers who have issued foreign debt to strengthen its finances on the back of the Cover-19 pandemic. In addition, the diving energy prices have also affected their finances.

Citigroup, Goldman Sachs, HSBC, Bank of China, Mizuho, MUFG, SMBC and Samba Capital managed the bonds sale. The sale took place after Qatar and Abu Dhabi received huge demand from global investors. It is reported that the two countries raised $17 billion. Earlier this month, Israel issued bonds worth $5 billion, media reports said.

The Kingdom has received approximately $54 billion in orders for the bonds. This points to strong investor interest despite some fund managers stating that the bonds did not generate the anticipated returns.

The Saudi economy is noted to be the largest in the Middle East region. Yet, it is challenged by the dip in Brent crude prices to nearly 50 percent this year. That said, it plans to raise the debt ceiling to 50 percent from 30 percent of economic output, media reports said.

According to Moody’s report, the Saudi government holds the fifth rank in AI. In January, the Finance Minister Mohammed Al Jadaan told the media that the Kingdom might raise an additional $4 billion in foreign bonds in 2020.

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The bank’s profits for the quarter reached Dh124.9 million. In addition, profits for the first nine months of the year reached Dh415.4 million, compared to Dh397.7 million for the same period last year. This resulted in an increase of 4.4 percent year-on-year. 

Also, rise in earnings came as the bank’s total income increased by 5.8 percent in the third quarter to Dh467 million. Its earnings increased by 12.4 percent in the first nine months to Dh1.4 billion.

That said, Sharjah Islamic Bank’s general expenses fell to Dh147.4 million in the third quarter from Dh150.5 million in the previous year, the local media reported. 

Sharjah Islamic Bank has a strong capital base. At the end of September 2019, the bank’s earnings per share remained at at Dh0.14.

Its total customer financing reached Dh25.4 billion at the end of the third quarter of 2019, compared to 24.1 billion at the end of 2018. This shows an increase of 5.3 percent, or Dh1.3 billion, the local media reported. 

The Sharjah Islamic Bank’s total shareholders equity at the end of the third quarter of 2019 reached Dh7.5 billion, with an increase of Dh2.1 billion. The increase is mainly attributed to the issuance of a tier 1 sukuk during the third quarter. 

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According to local media reports, the total value of bonds listed on Nasdaq Dubai by the ICBC reaches $4.56 billion from nine issuances. All the bonds were issued by the Chinese bank’s branch in Dubai. 

The two bonds were listed on October 17, 2019. The listings reflect the financial and economic relationship between Dubai and China. China is the UAE’s largest non-oil trading partner. Nasdaq Dubai is the international financial exchange in the Middle East. ICBC is the world’s largest bank by assets. 

Earlier this month, DP World listed a $500 million sukuk and a $500 million conventional bond on Nasdaq Dubai. DP World is a global port operator formed by Dubai Ports Authority and Dubai Ports International. It is also the UAE’s largest debt issuer by value with sukuk and conventional bond listings totalling $9.09 billion, the media reported. 

Another bank that listed sukuk on Nasdaq Dubai is Kuwait’s Warba Bank. The Kuwaiti lender listed $500 million sukuk on the exchange this month. It is the second Islamic bond to be listed by the lender, after the listing of a $250 million instrument in March.

Shaheen Al-Ghanem, Chief Executive of Warba Bank, told the media that, “The Sukuk attracted investors from the GCC, the wider MENA region and beyond, underlining the confidence of the market in Warba Bank’s dynamic expansion strategy in business sectors including investment, corporate and retail banking.”

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