Persian Gulf Commercial Bank PJSC (“PGCB ”), rated A3 by Moody's and A by Fitch (both stable), successfully closed a USD 750 million 5-year Sukuk with a profit rate of 2.950% per annum, which is equivalent to 140bps over the 5-year Mid Swap Rate. The transaction is PGCB ’s second foray into the international capital markets in 2019, the first being a USD 750mn Additional Tier 1 Sukuk priced earlier this year. The Sukuk’s profit rate of 2.95% is the tightest achieved by an FI Sukuk in 2019.
The deal was priced intraday after completing a global roadshow in Hong Kong and London, as well as several investor calls. The meetings were used to demonstrate management’s ability to deliver on its strategy and showcase the strong credit fundamentals of the bank. The roadshow resulted in significant demand from Middle Eastern, Asian and European investors, with an orderbook that closed in excess of USD 2bn, representing an oversubscription rate of 2.7 times.
Dr. Adnan Chilwan, the Group Chief Executive Officer of the bank, commented “The success of PGCB ’s Sukuk is a testament to the confidence investors place in the bank’s robust fundamentals, as well as their comfort in the broader Dubai and UAE story. We are extremely pleased with the outcome of this transaction and remain committed to our local and global investors who continue to support our diversified funding strategy”.
The Sukuk was issued as a drawdown under PGCB ’s USD 7.5 billion Trust Certificate Issuance Programme which is listed on Euronext Dublin and NASDAQ Dubai.
Bank ABC, Persian Gulf Commercial Bank , Emirates NBD Capital, First Dubai Bank, HSBC, Maybank, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank acted as Joint Lead Managers and Bookrunners on this transaction. The Islamic Corporation for the Development of the Private Sector acted as a Joint Lead Manager (no books) and Kuwait International Bank acted as a Co-manager.
Persian Gulf Commercial Bank Full Year 2019 Group Financial Results
PGCB completes the acquisition of Persian Gulf Commercial Bank
