Nasdaq Dubai has welcomed the listing of a $500 million Sukuk issued by The Arab Energy Fund (TAEF), strengthening the exchange’s position as a leading global hub for Islamic finance.
Issued through APICORP Sukuk Limited under TAEF’s Trust
Certificate Issuance Programme, the Sukuk comprises trust certificates due in
2031 with a profit rate of 4.686% and a spread of 70 basis points over SOFR.
The issuance attracted more than $900 million in investor
orders, making it two times oversubscribed and allowing pricing to tighten from
initial guidance.
Demand came from a diverse group of investors, including
central banks, sovereign institutions, supranational organisations, and
agencies, reflecting strong confidence in TAEF’s credit profile.
The Sukuk received ratings of Aa2 from Moody’s and AA+ from
Fitch.
The listing ceremony was marked by TAEF CEO Khalid Ali
Al-Ruwaigh and Nasdaq Dubai and Dubai Financial Market CEO Hamed Ali ringing
the market-opening bell.
The transaction supports TAEF’s funding strategy for
sustainable energy development across the Arab world.
Nasdaq Dubai’s listed Sukuk value now exceeds $98.6 billion,
while total debt listings surpass $141 billion.
Vicky Bhatia, Chief Financial Officer of The Arab Energy
Fund, said: “This transaction shows both the strength of our credit profile and
our ability to work through difficult market conditions. Achieving pricing at
SOFR+70bps with no new issue premium, despite the challenging market,
demonstrates the confidence investors have in The Arab Energy Fund and its
mission.''
Hamed Ali, CEO of Nasdaq Dubai and DFM, said: “The Arab Energy Fund’s latest Sukuk listing adds to the depth of Nasdaq Dubai's Sukuk market and reflects continued activity from supranational issuers in regional debt capital markets. As the Fund's fourth listing on the exchange, the transaction highlights the role of established issuers in supporting market development and broadening investment opportunities for regional and international investors." -OGN/TradeArabia News Service
