Mubadala Joins PIF in Turning to Islamic Debt Markets for Cash - Bloomberg
Mubadala Investment Co. is seeking to raise about $1 billion in its first dollar-denominated Islamic bond sale as the the Abu Dhabi fund seeks to take advantage of increased investor demand for the debt.
Abu Dhabi Commercial Bank PJSC, First Abu Dhabi Bank PJSC and HSBC Holdings Plc will act as global coordinators for the sale of debt issued under Sharia, or Islamic religious law, according to people familiar with the matter. Mubadala is looking to conduct the sale as soon as March, the people said, asking not to be named discussing non-public information.
Representatives for Abu Dhabi Commercial Bank, HSBC and Mubadala declined to comment. First Abu Dhabi Bank did not respond to requests for comment.
The potential sukuk sale by Mubadala comes on the back of Saudi Arabia’s Public Investment Fund raising $2 billion from an Islamic bond last month. Last year, the PIF also issued $3.5 billion of the debt in an offering that was more than seven times oversubscribed.
High oil prices have driven a surge in demand for sukuk because they have improved liquidity conditions at Islamic banks and asset managers, which are typically the biggest buyers of the bonds because they’re restricted to making Sharia-compliant investments.
Even so, sukuk supply remains muted: Moody’s expects issuance volume for the bonds to drop 6% to $86 billion in 2024.
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