Nakheel, a member of Dubai World has listed an issue of $750 million Trust Certificates (the "Sukuk") on the Dubai International Financial Exchange (DIFX), the world’s largest exchange for Sukuk by listed value. This is the second Sukuk that Nakheel has issued. The first issue, the world’s largest at $3.52 billion, was listed on the DIFX in December 2006. In the case of both issues, under certain conditions, investors will have the right to subscribe for up to a certain amount of shares in any future Qualifying Public Offering of any entity of the Nakheel Group, undertaken prior to the redemption of the Sukuk. Kar Tung Quek, Chief Financial Officer of Nakheel said: “Like our first Sukuk, this issue was very well received by investors looking for exposure to our global property and other businesses as they expand.
“Investor confidence is reinforced by the Sukuk’s listing on the DIFX, as the region’s international exchange with first class standards of regulation.”
Per E. Larsson, Chief Executive of the DIFX, said: “Sukuk are a rapidly expanding asset class, with $41.24 billion issued globally in 2007, a 63% increase from 2006. The DIFX will strengthen its leading role in the Sukuk sector as part of its wider strategy of leadership in Islamic finance.”
Nakheel’s $750 million Sukuk was issued by J.P. Morgan Securities Limited with a Sukuk al-Ijara structure maturing on January 16, 2011. J.P. Morgan was the sole bookrunner, lead manager and underwriter. The Sukuk is listed exclusively on the DIFX.
Hamed Ali, Executive Officer of the DIFX, said: "This is the ninth Sukuk from a UAE issuer to come to the DIFX, joining other Sukuk listings from a range of other issuers in the Middle East and East Asia.
“The DIFX offers issuers the visibility and high profile that come with listing on an exchange that is based in the Middle East and closely connected to the regional and international financial services community."