CITI appointed as delegate trustee & paying agent for first Sukuk cleared through NASDAQ Dubai
Structure supports growth of Dubai as a centre for debt
custody and clearing
Citi's Global Transaction Services business today announced that Citi Issuer Services has been appointed as the Issuing and Paying Agent for the first Sukuk to be cleared through the central securities depositary (CSD) of NASDAQ Dubai, the international stock exchange serving the Middle East. The $100m Sukuk, issued by the International Finance Corporation (IFC), listed on November 4, 2009.
NASDAQ Dubai now has 22 listed Sukuk with a nominal value of US$17.2 billion. The Sukuk issued by IFC, which is part of the World Bank Group, is the first one that uses the NASDAQ Dubai CSD to hold its securities.- Citi will be providing the Paying Agency and Delegate Trustee roles on the Sukuk for the life of the deal. Furthermore, as this was a ground-breaking deal, the transaction required Citi to open and administer a "New Issues account" opened with the NASDAQ Dubai to create and deliver the securities into the primary market.
Steve Donovan, Head of Global Transaction Services, Middle East and Pakistan said," As a leading global issuing & paying agent, Citi is thrilled to be extending these services for the first time through the NASDAQ Dubai CSD in this landmark deal.- The listing and clearing of the IFC Sukuk is a significant step forward in the further development of Dubai and the Middle East as a centre of excellence for the clearing, settlement and custody of debt securities.- Additionally, the inclusion of this new domestic market to the Issuer Services suite of domestic capabilities underscores the growing recognition of our Securities and Funds Services business in the Middle East and our ongoing commitment to the region-.
Jeff Singer, Chief Executive of NASDAQ Dubai, said, "As Dubai expands as a centre of Islamic finance, NASDAQ Dubai looks forward to listing more Sukuk and supporting these through its CSD. The successful handling of the IFC Sukuk demonstrates the efficiency and cost effectiveness of the exchange's CSD framework, which can also handle conventional bonds. Citi's role as issuing and paying agent has played a key part in the success of the IFC Sukuk listing.-
Citi has been in the Arab world for nearly 50 years and continues to view the region as critical to its global franchise. It is currently present in 10 Arab countries including Egypt, UAE, Lebanon, Jordan, Tunisia, Morocco, Algeria, Bahrain, Qatar and Kuwait.