Preferred Bank sells $62.5 million fixed-to-floating rate notes, Al Hilal Bank prices $225 million sukuk

By Lisa Kerner

Charlotte, N.C., June 13 – Preferred Bank privately placed $62.5 million of fixed-to-floating rate subordinated notes due 2026 with qualified investors.

The notes bear interest, payable semiannually, at the rate of 6% per annum until June 15, 2021. On that date, the interest rate will be adjusted to float at a rate equal to Libor plus 467.3 bps.

Proceeds will be used for general corporate purposes, for capital management and to support future growth, according to a news release.

Sandler O’Neill + Partners, LP was placement agent.

The independent commercial bank is based in Los Angeles.

Al Hilal Bank, PJSC priced $225 million of floating-rate sukuk due January 2019 in a private placement on May 31, according to a bank news release.

The sukuk carries a rate of Libor plus 160 basis points.

The bank described the Regulation S deal as the first Islamic private placement sukuk issued by a United Arab Emirates financial institution.

The issue is part of the bank’s strategy to diversify its funding base and tenors.

It is the second series of sukuk issued under the bank’s $2.5 billion trust certificate issuance program. The first was $500 million of 3.267% sukuk due 2018 that priced at par in October 2013.

The bank is owned by the government of Abu Dhabi through Abu Dhabi Investment Council.

© 2015 Prospect News.
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