Nasdaq Dubai welcomes 3 new Sukuk issuances by Indonesia
- 10 Jul 2024
Nasdaq Dubai welcomed three Sukuk issued by the Republic of Indonesia (Perusahaan Penerbit SBSN Indonesia III) totalling $2.35 billion, under its $35 billion Trust Certificate Issuance Programme.
These new listings reinforce Dubai’s stature as the world’s leading centre for Sukuk listings, with a total value of $96.39 billion, while further strengthening the close ties between Dubai and Indonesia.
The three Sukuk issuances include $750 million Trust Certificates due 2029, $1 billion Trust Certificates due 2034 and $600 million Trust Certificates due 2054, which is a Green Sukuk. The successful listing of these Sukuk solidifies the Republic of Indonesia’s position as one of the leading Sukuk issuers on Nasdaq Dubai, with a total of 20 listings amounting to $24.1 billion.
The total value of debt listed on Nasdaq Dubai adds up to US$134.1 billion, with Sukuk amounting to $93.89 billion. Nasdaq Dubai continues to also lead on the ESG related listings with green issuances totalling $19.7 billion of the $29.75 billion ESG related issuances.
To celebrate this occasion, Husin Bagis, Ambassador of the Republic of Indonesia to the UAE rang the market opening bell alongside Eko NM Saputro, Finance Attache at the Indonesian Embassy in Abu Dhabi on behalf of Government of the Republic Indonesia and Hamed Ali, CEO of Nasdaq Dubai and DFM.
Husin Bagis said, “We are honoured to witness the listing of the new three series of Indonesia Global Sukuk. This transaction attracts interest from diverse investor types and geography, showcasing robust investment appetite and market confidence for Indonesia given the Republic’s strong economic fundamentals. The 30-year tranche was a green series and showed evidence of the Republic’s dedication and long-term commitment to green and sustainable financing to combat the impact of climate change.”
Hamed Ali said, “We are pleased to welcome the Republic of Indonesia’s latest sukuk listings on Nasdaq Dubai. These listings not only highlight the importance of Dubai as a hub for Islamic finance but also strengthens the economic ties between the UAE and Indonesia. Moreover, the demand for these issuances demonstrates the confidence that global investors have in our market, reflecting Nasdaq Dubai’s commitment to providing a robust platform for both sukuk issuers and investors.”
Meanwhile earlier this month Nasdaq Dubai has welcomed the listing of $400 million Sukuk by Arada Developments, a UAE-based master developer.
This marks Arada’s second listing on Nasdaq Dubai and its first under their newly developed $1 billion Sukuk programme.
The five-year fixed-rate Sukuk attracted strong demand from regional and international investors.
The offering was oversubscribed by 3.5 times, drawing interest from a diverse group of investors worldwide, including Europe, the Middle East and Asia, with significant participation from institutional investors, fund managers, high-net-worth individuals (HNWIs), and banks.
This listing reinforces Dubai’s position as a premier global hub for Sukuk listings, bringing the total value of Sukuk issuances to $93 billion. Local issuers contribute 44 per cent of this value, while foreign issuers make up the remaining 56 per cent.
Nasdaq Dubai boasts a total value of $129 billion in listed bonds and Sukuk.
To mark the successful listing, Ahmed Alkhoshaibi, Group CEO of Arada, rang the bell at the market-opening ceremony at Nasdaq Dubai, along with Hamed Ali, CEO of Nasdaq Dubai and DFM. Alkhoshaibi said, “We’re pleased to be returning to Nasdaq Dubai to list our second Sukuk after the strong success and increased investor interest that followed the listing of our debut issuance a year ago.”
Hamed Ali added, “We welcome Arada’s successful listing on Nasdaq Dubai. The robust demand for this listing reflects the strong confidence that global investors have in the UAE’s Islamic finance market and broader capital markets. This listing further solidifies Nasdaq Dubai’s status as a leading market for Sukuk issuances.”