Mubadala Investment Company is seeking to raise about $1 billion in its first dollar-denominated sukuk sale, as the Abu Dhabi fund seeks to capitalize on increased investor demand for debt.
Abu Dhabi Commercial Bank, First Abu Dhabi Bank and HSBC will act as global coordinators for the sale of sharia-compliant debt, according to people familiar with the matter. Mubadala is looking to complete the sale this month, said the people, who asked not to be identified discussing the matter.
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 after Saudi Arabia’s Public Investment Fund raised $2 billion in Islamic bonds last month. Last year, the Saudi sovereign fund also issued $3.5 billion of debt in an offering that was more than seven times oversubscribed.
High oil prices have increased demand for sukuk because they have improved liquidity conditions for Islamic banks and asset managers, which are typically the largest buyers of sukuk because they are limited to making Sharia-compliant investments.
