DIFX is world's largest exchange for Sukuk with Investment DAR Listing
The Dubai International Financial Exchange (DIFX) today lists a $150 million Sukuk created by The Investment Dar Company K.S.C. (TID), making the exchange the global leader in Sukuk by listed value.
The value of Sukuk (Islamic-compliant bonds) on the DIFX totals $4.11 billion with the TID issue, a higher figure than on any other exchange.
Per E. Larsson, Chief Executive of the DIFX, said: "As the international exchange of the Middle East and surrounding countries, the DIFX is a natural home for Sukuk and other Islamic products. We will intensify our focus on this rapidly growing sector."
Gulf-based non-sovereign borrowers issued $4.6 billion worth of Sukuk between January and June 2006, a 117% rise on the figure for the same period in 2005.*
TID is a prominent Islamic financial institution based in Kuwait and is active in areas including consumer financing, real estate and investing. The Sukuk has been issued by TID Global Sukuk I Ltd, a company set up specifically to carry out the issuance.
Amr Abou El Seoud, Executive Vice President of TID, said: "We are delighted to become the first financial institution to bring a Sukuk to the DIFX. The exchange is known for its international standards and this listing raises awareness of our company and its development."
Nasser Alshaali, Chief Operating Officer of the DIFX, said: "The DIFX has attracted listings from many countries since it opened in September 2005, including companies with roots in Jordan, Saudi Arabia, Switzerland, India and now Kuwait. In our second year of operation we will reinforce our status as the region's international exchange."
WestLB AG, London Branch is book runner and joint lead manager of the TID Sukuk. Unicorn Investment Bank is Sharia advisor and joint lead manager.
The DIFX and FTSE Group in August 2006 jointly launched two Shariah-compliant, Gulf Cooperation Council (GCC) country equity indices. These are intended to facilitate the creation of investor products such as tracker funds, index certificates, warrants and exchange-traded funds.