Nasdaq Dubai has listed $600 million sukuk issued by the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB), taking the total value of sukuk listed in Dubai to $74.05 billion.
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. Four per cent of the issuance was subscribed by UK/European investors, 21 per cent from Asia and 75 per cent from 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.
The capital raised from the sukuk will be used for development activities in its 55-member countries which include creating competition, entrepreneurship, employment opportunities and export potential.
Financial market data provider Refinitiv has projected that a total of 1,008 issuances will hit the market in 2020 with a value of $131 billion as compared to 1,423 issuances worth $162 billion last year.
It is ICD’s second sukuk issuance, following a $300 million issuance in 2016, which is also listed on Nasdaq Dubai.
“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,” said Ayman Sejiny, Chief Executive Officer of ICD.
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.”
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