Standard Chartered, HSBC and National Bank of Abu Dhabi have been mandated by unlisted Al Hilal for a benchmark-sized deal under a bond program which could be worth up to $3 billion, one source with knowledge of the matter said.
The lender, wholly-owned by the Abu Dhabi Investment Council (ADIC), is in the process of getting ratings for the bank and the potential notes, and expects this to be completed before the year-end, said the source.
“The bank is looking at a program of $1 to $3 billion in total, the first tranche will be $500 million with an issuance likely in first quarter 2012,” the source said, asking not to be identified as the information was not yet public.
Set up in 2008, the bank earned its first profit of AED140 million ($38.12 million) in 2010.
The lender was one of two Abu Dhabi banks to subscribe to a $5 billion bond under the Dubai government’s $20 billion bond program late in 2009, during the Dubai’s debt crisis.
Al Hilal has an authorized capital of AED4 billion and a paid-up capital of AED2 billion.
It also set up Kazakhstan’s first Islamic bank last year.
Two other Abu Dhabi banks are seen issuing a sukuk before the end of the year.
Abu Dhabi Commercial Bank has picked banks for an Islamic bond which could launch this week, and Abu Dhabi Islamic Bank kicks off roadshows later this week for a potential benchmark-sized bond. A benchmark bond is usually $500 million.
