FGB to issue $1.07bn Islamic bond in Malaysia

March 8, 2014 1:35 am

Credit ratings agency, RAM Ratings has said Abu Dhabi’s First Gulf Bank, the third-largest bank by assets in the UAE, will raise 3.5 billion ringgit ($1.07bn) with Islamic bonds in Malaysia, Reuters has reported. The sukuk programme will be issued by the bank’s funding unit, FGB Sukuk Co II Ltd. RAM rated the program ‘AAA’ or ‘Stable’ on the bank’s size and high likelihood of government support, as the Abu Dhabi ruling family owns 64% of the firm. “The ratings also incorporate the bank’s excellent profitability, robust capitalisation, expanding franchise and moderate asset quality,” said RAM.