Nasdaq Dubai lists $600mn ICD Sukuk

By Rahul Vaimal, Associate Editor
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Nasdaq Dubai
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One of the region’s prominent stock exchanges, Nasdaq Dubai has welcomed the listing of a $600 million Sukuk by the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB).

The capital raised from Sukuk will support the wide-ranging development activities of the ICD within its 55 member countries, including creating competition, entrepreneurship, job opportunities and export potential. It also encourages the expansion of Islamic finance practices, such as debt and equity capital markets.

The five-year Sukuk was released over the mid-swaps rate at 140 basis points and was oversubscribed approximately three times, including orders from the joint lead managers. The diversity of the order book saw investors from Europe, Asia, and the Middle East. More specifically, the issuance was distributed as follows to investors, 4 percent of the issuance to Europe, 21 percent to Asia, and 75 percent to the Middle East. By investor type, fund managers were allocated 13 percent, Banks/Private Banks 57 percent, Agencies/Central Banks 29 percent, and Others 1 percent.

It is the second Sukuk issuance by ICD, after an issue of $300 million in 2016 which is also listed on Nasdaq Dubai.

Ayman Sejiny, Chief Executive Officer of ICD, stated: “We received strong investor interest in our new Sukuk issuance from a wide range of constituencies including fund managers, commercial and private banks and central banks – demonstrating their confidence and support for ICD’s strategy and initiatives in promoting private sector activity. ICD’s Sukuk listing on Nasdaq Dubai, as the region’s international exchange, provides the Sukuk with excellent links to regional and international investors on a well-regulated platform attracting global visibility.”

Abdul Wahed Al Fahim Image
Abdul Wahed Al Fahim
Nasdaq Dubai

“This new listing by a prominent multilateral entity adds further momentum to the growth of Dubai as the global capital of the Islamic Economy, under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister, and Ruler of Dubai. Nasdaq Dubai will continue to build critical mass in the Islamic capital markets sector, extending the scope and scale of the services that we offer to market participants.”

The latest listing by ICD takes the total value of Sukuk listed in Dubai to $74.05 billion, underlining the status of the Emirate as one of the world’s largest Sukuk listing centers by value.

Hamed Ali, Chief Executive of Nasdaq Dubai and Deputy Chief Executive of Dubai Financial Market, said: “In hosting this Sukuk issuance by ICD, Nasdaq Dubai is delighted to facilitate capital raising activity in support of private sector financing and advisory projects across the Muslim world, helping to generate wealth and prosperity. Our growing relationship with the multilateral IsDB Group demonstrates our commitment to serving Shariah-compliant issuers based regionally and internationally, providing an effective and high-profile listing platform.”

On October 15, 2020, ICD’s $600 million Sukuk was listed on Nasdaq Dubai.