First Gulf Bank plans MYR sukuk

First Gulf Bank plans MYR sukuk

Published: March 6, 2014

UAE bank proposes MYR3.5bn Malaysian programme in continuing diversification of funding sources.

First Gulf Bank (FGB), the UAE’s third-largest lender by assets, plans to launch a MYR3.5bn (US$1.07bn) sukuk programme.

Malaysian ratings agency RAM Ratings has assigned the proposed programme a triple-A rating with a stable outlook, noting the bank’s high likelihood of government support if required. In a statement, the agency also highlighted FGB’s “excellent profitability, robust capitalisation, expanding franchise and moderate asset quality”. The bank has been diversifying its funding sources and improving its liquidity, RAM’s analysts write.

FGB recently announced its 2013 financial results, including a 15% increase in net profits to AED4.77bn (US$1.29bn).