Nasdaq Dubai welcomes listing of $500 million Sukuk by Emaar Properties

Jamal Bin Theniyah, Chairman of Emaar Properties, on Tuesday rang the market-opening bell to celebrate the listing of a $500 million Sukuk on Nasdaq Dubai.

The ceremony was attended by Ahmad Al Matrooshi, Executive Board Member of Emaar Properties; Rashid Al Shamsi, Board Member of Nasdaq Dubai; and Hamed Ali, CEO of Nasdaq Dubai and Deputy CEO of Dubai Financial Market, as well as senior executives from both sides.

The $500 million 10-year Sukuk issuance is part of Emaar Properties’ $2 billion Trust Certificates Issuance Programme solely listed on Nasdaq Dubai. It has been priced at 3.7 per cent yield and attracted strong demand with a total value of investors’ applications exceeding US$3.3 billion.

Commenting on the announcement, Theniyah said, “The UAE, with Dubai in particular, continues to be an attractive destination for investors due to its promising growth driven largely by a number of key Government initiatives since the onset of the pandemic. The success of our latest Sukuk issuance demonstrates major investors’ confidence in both the Emaar Group and Dubai’s real estate market.

“This Sukuk also underscores the critical role Nasdaq Dubai plays as a well-regulated platform within both regional and global markets.”

Al Shamsi, in turn, stated, “The accelerating pace of issuance and listing from leading institutions in the UAE and beyond underscores their deep confidence in Nasdaq Dubai’s favourable ecosystem. Issuances and listings so far this year strongly reinforce Nasdaq Dubai’s status as the preferred listing venue for Sukuk and Bonds as well as its active role in realising Dubai’s strategy as one of the leading financial hubs globally.”

Ali said that this listing provides further impetus to the Exchange’s prominent status as a world-class marketplace for the listing of Sukuk and bonds in the Mena region.

“Nasdaq Dubai is continuously enhancing its infrastructure and regulations to cater to the requirements of our prominent issuers seeking to finance their growth strategies as well as to provide investors with diversified opportunities.”

The Emaar Properties Sukuk was listed on Nasdaq Dubai on 6th July 2021, taking the total value of Sukuk listings on Dubai capital markets to $78.04 billion, reinforcing its position as one of the world’s largest Sukuk listing venues.

Earlier Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank (EDB),rang Nasdaq Dubai’s market-opening bell to celebrate the listing of a $750 million bond.

The listing announcement event was attended by Hamed Ali, CEO of Nasdaq Dubai and Deputy CEO of Dubai Financial Market (DFM), as well as senior executives from both sides.

Al Naqbi said, “The successful second issuance of our $750 million bond issue, which was oversubscribed four times, reflects the global and local investor confidence in our strategy to support UAE’s economic diversification plans.” The programme will be fundamental to support individuals, SMEs, and corporates across priority industrial sectors in the UAE to build a knowledge-based economy, he added.

The five-year bond issuance received strong demand from investors, as 34 per cent of appetite came from Mena markets, 36 per cent from European markets, 28 per cent from Asian markets and 2 per cent from US offshore market.

Ali, in turn, said that these transactions, including the new bond listing from EDB, indicate their deep confidence in the robust listing framework of Nasdaq Dubai in line with the requirements of prominent corporations and investors. The issuance also underlines corporations’ commitment to playing a pivotal role in financing economic development.

The EDB bonds have been listed on Nasdaq Dubai on June 15, 2021, reinforcing Dubai’s leading status as the largest listing venue in the Middle East for $ denominated debt listings, with a total value of $98.5 billion.

Abdullah AlLanqawi, General Manager and Treasurer of Ahli United Bank (AUB) Kuwait, also rang the Nasdaq Dubai market opening bell to celebrate the listing of a $600 million Sukuk issued by the bank.

The new listing has increased the total value of debt issuances listed on Nasdaq Dubai by Kuwaiti issuers to $1.51 billion.

It has also reinforced Dubai’s status as one of the world’s largest centre for Sukuk listings with a total value of $77.56 billion.

Commenting on this listing, Jehad Al-Humaidhi, Acting CEO of Ahli United Bank Kuwait, said, “Ahli United Bank, Kuwait has successfully issued and listed AT1 Capital Sukuk with $600 million.

Subscriptions reached $1.8 billion representing 3 times the targeted size.

The issuance is priced at 3.875 per cent p.a. distributable semiannually. The over subscription reflects investors’ confidence in AUB’s management, performance and capability.

“This issuance will further support AUB’s capital base and is the second Sukuk issuance by AUB Kuwait to be listed successfully on Nasdaq Dubai. It is attributable to our trust in Nasdaq’s Dubai creditability and transparency in dealing fairly with all issuers and investors.”