GS breaks into sukuk but bankers question success

By Steven Gilmore
18 Sep 2014

Goldman Sachs got what it wanted on Tuesday with a debut sukuk sale three years in the making. Bankers on and away from the deal gave a broad range of opinions on the sukuk concession the firm paid relative to its conventional curve. But almost 90% of the bond went into the Middle East, providing the desired diversification that bankers close to the deal said had motivated Goldman’s foray into the sukuk market.

Abu Dhabi Islamic Bank, Emirates NBD Capital, Goldman Sachs, National Bank of Abu Dhabi, NCB Capital and QInvest priced the five year sukuk al-wakala at 90bp over swaps. The leads received $1.5bn in orders and priced the bond flat to where a conventional five year Goldman deal would have ...

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