July 14 (Reuters) – Abu Dhabi Islamic Bank ADIB.AD plans to raise as much as $5 billion through the sale of Islamic bonds, or sukuk, under a trust certificate issuance program detailed in a July 8 prospectus.
The second-largest lender in the United Arab Emirates posted the prospectus on the London Stock Exchange on Tuesday, listing HSBC (HSBA.L) as the lead arranger on the Islamic bond program.
State-controlled ADIB did not provide a reason for the sukuk issuance program, but the bank, like many other UAE financial institutions, has been forced to take provisions against bad loans amid the global financial crisis and turmoil over Dubai World’s [DBWLD.UL] restructuring.
In addition, ADIB’s chief executive said in April that the bank is planning to expand in retail banking, with a target of 70 branches across the UAE by the end of the year compared with 55 at the end of the first quarter.
ADIB said in a separate statement on Wednesday that it has postponed its board of directors meeting to approve second quarter earnings. The meeting, originally scheduled for later Wednesday will now take place on Sunday. (Reporting by Shaheen Pasha; Editing by Andrew Callus)