| A ground-breaking $1 billion Tier 1 hybrid sukuk from ADIB, sold in early November, opened the way for banks to use Islamic bonds to boost core capital. The sukuk was described as "hybrid" because it had equity-like characteristics; it was perpetual, meaning it had no maturity date.
The sukuk attracted about $15 billion of investor bids, a massive oversubscription, and ADIB was able to price it at a 6.375 percent profit rate, raising money very cheaply compared to conventional hybrid bonds issued by Western banks over the past year. The sukuk's price has continued to rise in the secondary market since issue, showing very strong investor demand for it...............................................Full Article: Source
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