NASDAQ Dubai welcomes $650 million JAFZ Sukuk to its market
- Jebel Ali Free Zone chooses the international exchange in the region for its $650 million seven-year Sukuk
- Total value of listed Sukuk on the exchange now at $7.1 billion
- JAFZA CEO welcomes positive response from the market resulting in successful fund-raising
NASDAQ Dubai welcomed the listing of a $650 million Sukuk by Jebel Ali Free Zone (JAFZ) on its market. The listing confirms the exchange’s status as the largest in the Middle East for Islamic bonds, bringing the total nominal value of its listed Sukuk to $7.1 billion.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: “As the international exchange serving the UAE and the region, NASDAQ Dubai is delighted to be chosen by JAFZ for its Sukuk listing. NASDAQ Dubai offers Sukuk issuers and their investors a well regulated, effective and internationally visible platform.
“We look forward to hosting further listings in this expanding asset class from public and private issuers, from the UAE and other countries.”
Global Sukuk issuance reached $43.5 billion in the first quarter of 2012, up 55% from the same period of 2011, according to NASDAQ Dubai figures.
Salma Hareb, CEO of JAFZ, said: “Jafza has once again demonstrated a strong and sustainable long-term business model. This refinancing success confirms the strength of Jafza as global players”.
Jafza has successfully priced earlier this month the issuance of US$650 million Sukuk Certificates (‘the Sukuk’) due 2019, marking the company’s first US dollar-denominated issuance and its first transaction in the international debt capital markets since 2007.
The transaction saw strong demand from regional and international investors, with the order book 3.1 times subscribed. The order book was well-diversified, both in terms of investor type and geography. European investors accounted for 26% of the allocation, Asian accounts 7%, US Offshore investors 2% and Middle Eastern investors took up the balance of 65%.
The Sukuk was admitted to NASDAQ Dubai’s market together with the listing by the Dubai Financial Services Authority (DFSA), the listing authority in the Dubai International Financial Centre (DIFC).
The Sukuk structure involves trust certificates issued as trustee by JAFZ Sukuk (2019) Ltd under a Wikala agency framework.