Sukuk was allocated to investors in Middle East, Asia and Europe
Dubai, United Arab Emirates: Capital raised will support private sector activities within the 55 member countries of the Islamic Corporation for the Development of the Private Sector; Sukuk was allocated to investors in Middle East, Asia and Europe; listing reinforces Dubai’s role as one of world’s leading Sukuk centres with total listed value of USD 74.05 billion US dollars.
Nasdaq Dubai has welcomed the listing of a UDS 600 million Sukuk by the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB).
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: 4% of the issuance to UK/Europe, 21% to Asia, and 75% to the Middle East. By investor type, fund managers were allocated 13%, Banks/Private Banks 57%, Agencies/Central Banks 29%, and Others 1%.
It is ICD’s second Sukuk issuance, following a USD 300 million 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.”
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, UAE 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 74.05 billion US dollars, 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, said: “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 600 million US dollar Sukuk listed on Nasdaq Dubai on October 15, 2020.
About Nasdaq Dubai:
Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).
The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
The Islamic Corporation for the Development of the Private Sector (ICD) is a multilateral financial institution established by the Board of Governors of the Islamic Development Bank (IsDB) during its twenty-fourth (24) annual meeting held in Rajab 1420H (November 1999) in Jeddah, Kingdom of Saudi Arabia. ICD was established to be the IDBG private sector window. The authorized capital of the Corporation is USD 4 billion. The shareholders consist of the IsDB (rated Triple A), 55-member countries and 5 financial institutions from the member countries. ICD Rated A2’ by Moody’s, ‘A’ by S&P and, A+ by Fitch
The ICD aims to play a complementary role to the activities of IsDB and the national financing institutions in the member countries by focusing on private sector institutions in their various activities and operations in full compliance with the principles of Islamic Shari’ah. In addition to extending financing and financial services, ICD provides advisory and consultancy services to governments and private sector institutions in order to adopt policies for establishing, expanding and modernizing private sector companies, developing Equity Capital Market (ECM), Debt Capital Market (DCM) in the form of Sukuk, adopting better management practices, and strengthening the role of the market economy. ICD focuses its financing on development projects (such as infrastructure and private equity funds) that aim to create job opportunities and to encourage exports.
In order to achieve all these goals, ICD establishes and strengthens cooperation and partnership relationships with an aim to establish joint or collective financing. ICD also applies financial technology (Fintech) to make financing more efficient and comprehensive. Financial services institutions within ICD’s member countries are benefiting from fintech innovations by using artificial intelligence, robotics, blockchain, data analytics, and cloud computing services. ICD created a platform based on its relationships with 119 financial institutions, through which, the Islamic Development Bank Group (IsDBG) in general and the institution, in particular, can have access to a concerned country and identify available financing opportunities. The platform allows financial entities to collaborate in identifying investment opportunities, sharing market information and laying the groundwork for actual financial transactions within the OIC member countries and across borders