One of the leading Islamic financial institutions in the UAE, Emirates Islamic, has successfully closed the issuance of a $500 million 5-year Sukuk from its $2.5 billion Certificate Issuance Programme.
The landmark issuance, rated A+ by Fitch, will be listed on NASDAQ Dubai and Euronext Dublin. Investors showed great interest resulting in an order book of $ 1.2 billion, roughly 2.4 times issuance size with a profit rate of 1.827%, the lowest achieved by a UAE bank in the past ten years.
The investor base was geographically diverse, with 41% placed into the Middle East and North Africa, 28% allocated to Asia, 17% to US offshore investors and 14% into Europe. The success of this transaction, in an especially busy period of GCC fixed-income financing, shows the Bank’s appeal to investors.
Bank ABC, Citigroup, Dubai Islamic Bank, Emirates NBD Capital, HSBC, Standard Chartered Bank and The Islamic Corporation for the Development of the Private Sector acted as Joint Lead Managers and Bookrunners for the transaction.
Salah Amin, CEO at Emirates Islamic said “We are extremely proud that the Sukuk issuance has been oversubscribed reaffirming strong investor confidence in Emirates Islamic’s fundamentals and growth story. We are pleased with the overwhelming response from both regional and global investors which is a positive endorsement of the banks credit strength and investor proposition.”