NASDAQ Dubai and DFSA hold bond and Sukuk listing forum for bankers and lawyers
NASDAQ Dubai and the Dubai Financial Services Authority (DFSA) explained the advantages of listing conventional bonds and Sukuk on the region's international exchange, at a forum attended by leading investment banks and law firms.
The event held at the Dubai International Financial Centre (DIFC) provided details of the new listing and admission framework, following the transfer of NASDAQ Dubai's Official List of Securities to the DFSA in October 2011. This framework gives issuers the ability to list debt in a streamlined manner under an aggressive timetable, comparable to listing regimes on other international exchanges.
Conventional bonds and Sukuk can be held in NASDAQ Dubai's Central Securities Depository (CSD), which provides a wide range of services including custody, processing of corporate actions and settlement of over the counter cross-border transfers.
NASDAQ Dubai is the only exchange in the Middle East that has direct access to Euroclear, an International CSD, providing an easy transaction process with the NASDAQ Dubai CSD for international and regional investors.
Gerald Santing, Managing Director, Markets, of the DFSA said: 'The DFSA's Listing Regime offers a balanced approach to regulation with laws and practices aligned to European standards as well on the prospectus' content and on the time lines. We have co-operated with NASDAQ Dubai to ensure that we are able to streamline processes effectively for the benefit of issuers and advisers alike. These new arrangements strengthen the competitive position of the exchange and the DIFC as the preferred place to list Sukuk.'
Craig Hewett, Head of Business Development at NASDAQ Dubai, said: 'The new listing and admissions framework positions NASDAQ Dubai as the exchange of choice for regional issuers of conventional bonds and Sukuk. Instead of going outside the region for an exchange, issuers can find all the listing and custody services they need right here in Dubai. We are committed to providing issuers and investors with first class and easily accessible debt and Sukuk services.'
DFSA and NASDAQ Dubai executives gave details at the forum of requirements for listing and admission documents, as well as of timelines for issuers to submit them and receive a prompt response. An executive of Euroclear explained how transfers between Euroclear and NASDAQ Dubai can be carried out simply and inexpensively.
The DFSA published proposed changes to its listing requirements in October 2011. NASDAQ Dubai is the largest exchange in the Middle East for Sukuk, with 15 listings with a total nominal value of 10.6 billion dollars.
Global sukuk issuance reached 20 billion dollars in the third quarter of 2011, up 52% from the same period of 2010, according to NASDAQ Dubai figures.