Nasdaq Dubai welcomes listing of $200m Sukuk by GFH Group
- 11 Jun 2020
Nasdaq Dubai, the region’s international financial exchange, welcomed the listing of $200 million Sukuk issued by GFH Financial Group (GFH).
GFH said the proceeds of the Sukuk will be used to further strengthen its balance sheet and diversify its income. It is GFH’s second Sukuk listing on Nasdaq Dubai, following the listing of a $300 million Sukuk in February 2020.
Dubai’s Sukuk listings by value now total $64.5 billion. UAE issuers account for 44% of these by value with 56% from issuers in other countries.
Hisham Alrayes, Chief Executive of GFH Financial Group, said: “As we strengthen our activities as a leading regional and international financial group following our latest successful capital raise, we are delighted to expand our relationship with investors through Nasdaq Dubai. The global visibility that the exchange provides and its high standards of regulation provide valuable support to our strategy of engaging positively with market participants and maintaining their support for our growth and development.” Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As the region’s international exchange, Nasdaq Dubai provides GFH and other Sukuk issuers on its market with excellent investor links and a high public profile. We look forward to welcoming further listings from a range of regional and international issuers to support their funding requirements as they develop their strategies to prosper through the current economic volatility.” GFH’s 200 million US dollar Sukuk listed on Nasdaq Dubai on June 9, 2020.
Nasdaq Dubai Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia.
Dubai Islamic Bank:
Dubai Islamic Bank (DIB), has successfully closed a $1 billion long five-year Sukuk with a profit rate of 2.95 per cent per annum, which is equivalent to 245 basis points (bps) over the equivalent tenor Mid Swap Rate.
In a statement by the bank on Wednesday, DIB’s $1 billion Sukuk is a landmark transaction as it is the first public benchmark Sukuk from a regional financial institution after the pandemic market disruption with the last Sukuk issuance from GCC being in February 2020.
The bank has in effect reopened the international Islamic capital markets for FI issuers from the UAE.
The deal was priced intraday after completing a global investor call, which was attended by several local, regional and international investors. The Sukuk attracted more than 170 high-quality investors reaffirming their commitment to UAE and DIB in particular. The success of DIB’s offering can be gauged by the substantial international interest in the Sukuk as the orderbook rose to over $4.5 billion - with nearly 50 percent emanating from outside MENA.
Dr Adnan Chilwan, the Group Chief Executive Officer of DIB, commented, “With the issuance being subscribed nearly 4.5 times, DIB continues to remain an attractive credit in the capital market space. This transaction is a clear testament to the confidence the global markets place in the bank’s robust fundamentals, as well as investor comfort in the broader Dubai and UAE economy. It also clearly points towards investors’ appreciation of the economic measures and policy response of the UAE towards the pandemic.”The Sukuk was issued as a drawdown under DIB’s $7.5 billion Trust Certificate Issuance Programme which is listed on Euronext Dublin and Nasdaq Dubai.
Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, The Islamic Corporation for the Development of the Private Sector, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners on this transaction.
Agencies