Nasdaq Dubai welcomes $600m Sukuk listing by ICD

Nasdaq Dubai has welcomed the listing of a $600m Sukuk by the Islamic Corporation for the Development of the Private Sector, the private sector arm of the Islamic Development Bank.

The capital raised from the Sukuk will support ICD’s wide-ranging development activities within its 55 member countries which include creating competition, entrepreneurship, employment opportunities and export potential, as well as encouraging the development of Islamic financing activities such as the debt and equity capital markets.

The five-year Sukuk was issued at 140 basis points over the mid-swaps rate and was approximately three times oversubscribed, including orders from the joint lead managers. The diversity of the orderbook saw investors from Europe, Asia, and the Middle East.

More specifically, the issuance was allocated to investors as follows: four per cent of the issuance to the United Kingdom/Europe, 21 per cent to Asia, and 75 per cent to the Middle East.

By investor type, fund managers were allocated 13 per cent, banks/private banks 57 per cent, agencies/central banks 29 per cent, and others, one per cent.

It is ICD’s second Sukuk issuance, following a $300m issuance in 2016, which is also listed on Nasdaq Dubai.

Ayman Sejiny, Chief Executive Officer of ICD, stated, “We received strong investor interest in our new Sukuk issuance from a wide range of constituencies including fund managers, commercial and private banks and central banks – demonstrating their confidence  and support for  ICD’s strategy and initiatives in promoting  private sector activity.  ICD’s Sukuk listing on Nasdaq Dubai, as the region’s international exchange, provides the Sukuk with excellent links to regional and international investors on a well-regulated platform attracting global visibility.”

Speaking on the development, Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said, “This new listing by a prominent multilateral entity adds further momentum to the growth of Dubai as the global capital of the Islamic Economy, under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, United Arab Emirates Vice President and Prime Minster, and Ruler of Dubai. Nasdaq Dubai will continue to build critical mass in the Islamic capital markets sector, extending the scope and scale of the services that we offer to market participants.”

ICD’s latest listing brings the total value of Sukuk listed in Dubai to $74.05bn, underlining the emirate’s status as one of the largest Sukuk listing centres in the world by value.

Hamed Ali, Chief Executive of Nasdaq Dubai and Deputy Chief Executive of Dubai Financial Market, explained, “In hosting this Sukuk issuance by ICD, Nasdaq Dubai is delighted to facilitate capital raising activity in support of private sector financing and advisory projects across the Muslim world, helping to generate wealth and prosperity. Our growing relationship with the multilateral IsDB Group demonstrates our commitment to serving Sharia’a-compliant issuers based regionally and internationally, providing an effective and high-profile listing platform.”

ICD’s $600m Sukuk listed on Nasdaq Dubai on October 15, 2020.

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