Nasdaq Dubai welcomes listing of $500 million sukuk by SIB
- 25 Jun 2020
Nasdaq Dubai welcomed the listing of a 500 million US dollar sukuk by Sharjah Islamic Bank (SIB) The capital raised will support SIB’s activities and strategic development to cater to its customers in corporate, investment and retail banking. The five-year sukuk was subscribed 72 times by regional and international investors with 150 investors showing their interest. It brings the total value of SIB sukuk listings on Nasdaq Dubai to $2 billion following listings of 500 million US dollars each in 2016, 2018 and 2019.
Mohammed Abdulla, Chief Executive Officer of SIB said: “The very positive response from the market to our latest sukuk reflects investors’ strong belief in SIB’s strategy as we develop our activities across all our areas of business for a wide range of businesses and individuals. Our listing on the region’s international exchange supports our visibility regionally and globally and reflects the leading role played by UAE financial institutions in collaborating to develop the Sharia’a-compliant sukuk markets.”
SIB’s latest 500 million US dollar sukuk listed on Nasdaq Dubai on June 23rd, 2020.
Essa Kazim, Governor of Dubai International Financial Centre, Secretary General of Dubai Islamic Economy Development Centre, and Chairman of Dubai Financial Market said: “SIB’s successful listing on Nasdaq Dubai demonstrates the depth of sukuk expertise and market knowledge in the UAE and the strength of its Islamic finance sector.
The listing underlines the growth of Dubai as the global Capital of the Islamic Economy, under the initiative launched in by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai.”
SIB’s sukuk brings the total value of sukuk listed in Dubai to 6929 billion US dollars, underlining the emirate’s status as one of the largest sukuk listing centres in the world by value.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “We are delighted to welcome SIB as our eighth sukuk listing so far this year and look forward to welcoming many more regional and international Islamic issuances during the course of 2020.
We will strengthen our support for private and public issuers and investors who use the sukuk asset class as an effective capital markets vehicle.”
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “SIB’s sukuk listing underlines the close collaboration and mutually beneficial connections that the exchange enjoys with prominent UAE and overseas Sharia’a-compliant issuers and investors.
We are committed to providing an effective and high-profile listing platform for SIB as it develops its important services for institutions and individuals in the UAE and beyond.” Sharjah Islamic Bank (SIB), one of the leading Islamic banks in the UAE, priced a $500 million (Dhs183 billion) long 5-year sukuk, with a profit rate of 285 per cent per annum, fetching it an A- rating by S&P Some of the other achievements of the bank during the year include, expansion of its investment and financial services in the area of individual or corporate financing SIB was able to generate significant momentum from international and regional investors with the order books reaching a high of $36 billion, 72x times greater than the issuance for the deal closed on June 16, and the liquidity obtained from this issuance process will be used to enhance SIB’s liquidity and business growth.
This is SIB’s eight sukuk issuance after launching it’s first sukuk in 2006 This confirms the bank’s credibility despite the current exceptional circumstances Mohammed Abdullah, CEO of Sharjah Islamic Bank, said: “The success of this sukuk is evidence of an investor’s confidence in the solid foundation of SIB, and their belief in the growing economy of the emirate of Sharjah and UAE in general We are delighted with the results of this successful deal which have been achieved amid the challenging COVID-19 pandemic. We will continue to remain committed to our local and international investors, those who have faith and continue to support our diverse funding strategy.”
He further added that the launch of the sukuk aligns with the bank’s plans and strategy, aimed at increasing the bank’s capitalisation rates in order to enhance future growth and strengthen the bank’s financial position 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) Business Bureau, Gulf Today The five-year sukuk was subscribed 72 times by regional and international investors with 150 investors showing their interest.