Nakheel, a member of Dubai World, has listed an issue of $750m (Dh2.7 billion) Trust Certificates (sukuk) on the Dubai International Financial Exchange (DIFX), the world’s largest exchange for sukuk by listed value.
This is the second sukuk that Nakheel has issued. The first issue, the world’s largest at $3.52bn, was listed on the DIFX in December 2006. In the case of both issues, under certain conditions, investors will have the right to subscribe for up to a certain amount of shares in any future qualifying public offering of any entity of the Nakheel Group, undertaken prior to the redemption of the sukuk.
Kar Tung Quek, chief financial officer of Nakheel, said: “Like our first sukuk, this issue was very well received by investors looking for exposure to our global property and other businesses as they expand.
“Investor confidence is reinforced by the sukuk’s listing on the DIFX, as the region’s international exchange with first class standards of regulation.”
Per E Larsson, Chief Executive of DIFX, said: “Sukuk is a rapidly expanding asset class, with $41.24bn issued globally in 2007, a 63 per cent increase from 2006. DIFX will strengthen its leading role in the sukuk sector as part of its wider strategy of leadership in Islamic finance.”
Nakheel’s $750m sukuk was issued by JP Morgan Securities Limited with a Sukuk Al Ijara structure maturing on January 16, 2011. JP Morgan was the sole bookrunner, lead manager and underwriter. The sukuk is listed exclusively on the DIFX.
Hamed Ali, Executive Officer of DIFX, said: “This is the ninth sukuk from a UAE issuer to come to DIFX, joining other Sukuk listings from a range of other issuers in the Middle East and East Asia.
Nakheel lists $750m sukuk issue on DIFX