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| Source: Sharjah Islamic Bank. The bell-ringing ceremony, conducted by Mohammed Abdulla, Chief Executive Officer of Sharjah Islamic Bank, occurred 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 Dubai Financial Market (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 (SIB), recently rang the opening bell to celebrate the listing of an AED1.84 billion (US$500 million) sukuk on Nasdaq Dubai.
The move supports SIB's expansion plans and maintains Dubai’s expansion as the global capital of the Islamic economy. Sukuk listings on the Emirate’s exchanges now total US$28.96 billion.
Mohammed Abdulla said: “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 7.2 times, to the tune of 120 orders worth US$3.6 billion. The five-year notes were priced at a profit rate of 2.843% or 110 basis points above prevailing five-year mid swaps. Banks and other 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%.
The transaction was oversubscribed 7.2 times, to the tune of 120 orders worth US$3.6 billion. The five-year notes were priced at a profit rate of 2.843% or 110 basis points above prevailing five-year mid swaps. Banks and other 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 with the remaining 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 US$100 billion to US$120 billion, 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 US$400 million and subsequently in 2013 the bank established a US$1.5 billion sukuk programme. Given the overwhelming demand for SIB’s credit globally, the bank was able to tap the market for the US$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 programme to a US$3 billion in 2015 and the issuance under which is why we are here today, celebrating listing on Nasdaq Dubai.”
SIB’s US$500 million 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 US$500 million listing in April 2013.
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 US$100 billion to US$120 billion, 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 US$400 million and subsequently in 2013 the bank established a US$1.5 billion sukuk programme. Given the overwhelming demand for SIB’s credit globally, the bank was able to tap the market for the US$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 programme to a US$3 billion in 2015 and the issuance under which is why we are here today, celebrating listing on Nasdaq Dubai.”
SIB’s US$500 million 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 US$500 million listing in April 2013.