Noor Bank Debut Sukuk

Noor Bank successfully issued its debut sukuk today, though incorrectly claimed it to be the lowest price ever issued in UAE. The recent Emirates Airline sukuk was priced lower at 2.471% as compared to Noor Bank 2.788%.

Update from Noor Bank 23.04.15: “Noor Bank’s inaugural coupon pricing is the cheapest among FIs in the UAE and is one of the cheapest across all sectors in the UAE.”

Order Book Down when compared to SIB

The order book was 4.3 times over-subscribed, which is lower than the recent Sharjah Islamic Bank (SIB) sukuk which had a order book of US$3.6 billion for its $500m sukuk thus SIB was 7.2 times oversubscribed from 120 orders, compared to Noor Bank’s 4.3 oversubscription.

Lower order books are a trend within the sukuk market due to a combination of a number of recent issuances absorbing liquidity from the market, as well as a drop off in demand due to the oil price drop.