"Nasdaq Dubai" It welcomes the listing of $500 million sukuk for the Arab Energy Fund
Dubai, June 26 / WAM / Nasdaq Dubai welcomed the listing of sukuks worth $500 million issued by the Arab Energy Fund, the multilateral financial institution specialized in financing and investing in the energy sector.
This listing, according to a press release issued today, reflects the established relationship between the Arab Energy Fund and Nasdaq Dubai, and contributes to enhancing the depth and diversity of the sukuk market on the stock exchange.
This issuance falls within the Arab Energy Fund’s trust certificates issuance program through APICORP Sukuk Limited, and includes trust certificates worth $500 million due in 2031.
The sukuks, classified as senior unsecured debt, carry a profit rate of 4.686% and are priced at a margin of 70 basis points over the SOFR.
The issue attracted orders exceeding $900 million, with coverage exceeding twice the issue size, enabling improved pricing conditions compared to initial guidance.
The deal witnessed strong and diverse demand across various geographical regions and investor categories, as the investor base included high-quality institutions such as central banks, sovereign entities, multilateral institutions, and SSAs, which confirms the strength of the Arab Energy Fund’s credit rating and its position in the markets.
The sukuk also received a rating of “Aa2” from Moody’s and “AA+” from Fitch, which reflects the strong creditworthiness of the Arab Energy Fund.
In celebration of the successful listing, Khaled Al-Ruwaig, CEO of the Arab Energy Fund, rang the opening bell of the trading session at Nasdaq Dubai, along with Hamed Ali, CEO of the Dubai Financial Market and Nasdaq Dubai, and a number of senior executives from both sides.
Vicky Bhatia, Head of Finance at the Arab Energy Fund, said that this deal reflects the strength of the fund’s credit rating and its ability to deal with difficult market conditions, and that achieving pricing at “SOFR+70” basis points without any new issue premium, and despite the challenges in the market, reflects the confidence that investors place in the Arab Energy Fund and in its mission.
For his part, Hamed Ali said that the latest listing of sukuks from the Arab Energy Fund contributes to enhancing the depth and diversity of the sukuk market on Nasdaq Dubai.
The new sukuk comes after the Arab Energy Fund listed 10-year sukuk worth $500 million earlier this year, and forms part of the diversified financing strategy adopted by the Fund to support sustainable development projects in the energy sector in the Arab world.
The total value of the sukuks listed on Nasdaq Dubai, to date, has exceeded $98.6 billion, cementing the stock exchange’s position as one of the most prominent global platforms for Islamic finance.
The total value of debt instrument listings on the stock exchange exceeded $141 billion across sovereign and multilateral issuers, financial institutions and various companies.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
