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27
Apr '15

SIB rings bell to celebrate listing of AED 1.84 billion Sukuk on Nasdaq Dubai

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  • Mohammed Abdulla: Sukuk received overwhelming response from investors
  • HE Essa Kazim: Listing adds further momentum to Dubai’s growth as global Capital of Islamic Economy   

Dubai, May 3 2015 - Mohammed Abdulla, Chief Executive Officer of Sharjah Islamic Bank, rang the opening bell to celebrate the listing of an AED 1.84 billion (500 million US dollar) Sukuk on Nasdaq Dubai.

As well as supporting the expansion plans of SIB, the listing maintains Dubai’s expansion as the global Capital of the Islamic Economy. Sukuk listings on the Emirate’s exchanges now total 28.96 billion US dollars.

The bell-ringing took place in the presence of His Excellency Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC) and Chairman of DFM; Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai; Hamed Ali, Chief Executive of Nasdaq Dubai; Ahmed Saad, Deputy Chief Executive Officer of Sharjah Islamic Bank; and Saeed Al Amiri, Head of Investment Group of Sharjah Islamic Bank.

 

Mohammed Abdulla, Chief Executive Officer of Sharjah Islamic Bank, remarked: “We are delighted to list our Sukuk on Nasdaq Dubai, as an international listing venue. Nasdaq Dubai gives our listing global visibility from within our own country and the region. We appreciate the exchange’s high regulatory standards and straightforward listing processes. This Sukuk listing by SIB, as one of the UAE and the region’s most respected Islamic institutions, underlines the rapid growth of  the listed  Islamic securities sector.”

 

The transaction was oversubscribed by 7.2 times, receiving around 120 orders amounting to $3.6 billion. The 5-year notes were priced at a profit rate of 2.843 per cent or 110 bps above prevailing 5-year Mid Swaps. Banks and financial institutions received the lion’s share of the Sukuk offering, with 59%, followed by fund managers and hedge funds with 33%, supranationals and central banks with 6%, and others with 2%. Around 63% of investors were from the Middle East, 23% from Asia and 14% from Europe .

 

His Excellency Essa Kazim, Governor of DIFC, Secretary General of DIEDC and Chairman of DFM said: “SIB’s listing adds further momentum to the initiative to position Dubai as the global Capital of the Islamic Economy, launched in 2013 by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President, Prime Minster and Ruler of Dubai. The depth and breadth of Dubai’s expertise in Islamic capital markets enable the Emirate to provide first class services in all aspects of Sukuk activity for regional and international market participants.” 

 

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “SIB’s listing underlines the close and mutually beneficial connections that the exchange enjoys with leading Islamic financial institutions. We look forward to welcoming many more regional and international Sukuk issuers as the sector continues to expand.”

 

Global sukuk issuance is expected to remain resilient in 2015 at about 100 billion to 120 billion US dollars, according to RAM Ratings.

 

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “Nasdaq Dubai is committed to further enhancing its Sukuk listing procedures and framework, to ensure streamlined access to the exchange for issuers and ongoing support post-listing. In addition we will introduce new initiatives to meet the needs of market participants.”

 

Ahmed Saad, Deputy Chief Executive Officer of Sharjah Islamic Bank, said: “SIB is the first  UAE based Islamic bank to issue a Sukuk in 2006 and since then has been very active in Debt Capital Markets space. In 2011 the bank re-entered the market and issued a stand-alone Sukuk for USD 400 million and subsequently in 2013 the bank established a USD 1.5 billion Sukuk Program. Given the overwhelming demand for SIB’s credit globally, the bank was able to tap the market for USD 500 million issuance at a very attractive pricing and geographical mix with strong participation from Europe, Far East and the Middle East.”

“The 2013 Sukuk was a major milestone for the bank since it helped position SIB as a key player in the global Sukuk space, which enabled us to upsize the program to a USD 3 billion in 2015 and the issuance under which is why we are here today, celebrating listing on Nasdaq Dubai.”

SIB’s 500 million US dollar Sukuk listed on the exchange on April 2, 2015. It is the second Sukuk to be listed by the bank on Nasdaq Dubai, following a 500 million US dollar listing in April 2013.

About Nasdaq Dubai

 

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).

 

About Sharjah Islamic Bank

Sharjah Islamic Bank is one of the leading national banks in the UAE, which has garnered an excellent reputation through embracing a number of ground breaking initiatives and applying the latest IT systems in various business fields of banking sector. The bank offers modern Sharia’a compliant products and services in compliance with the highest standards of quality to its clientele through its  branches across the country. The bank adopts clear and prudent strategy and policy, particularly in terms of risk management and investment diversification in all its banking operations and is socially responsible through the launching of a host of CSR initiatives.      

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