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International Investment Group (IIG) of Kuwait lists $200 million exchangeable Sukuk on DIFX

PUBLISHED ON 14-Jun-2007
International Investment Group (IIG) of Kuwait lists $200 million exchangeable Sukuk on DIFX
International Investment Group, a Sharia-compliant investment house licensed by the Central Bank of Kuwait, today listed a $200 million exchangeable Sukuk on the Dubai International Financial Exchange (DIFX).

The listing is the first international Sukuk offering that is exchangeable into shares of a Kuwaiti company. It is also the second Sukuk from a Kuwait company to list on the DIFX.

It brings the total value of Sukuk listed on the exchange to $9.18 billion, confirming its stature as the largest exchange in the world for Sukuk by listed value.

Commenting on the listing, Sami Al-Bader, Chairman and Managing Director of IIG, said: “We chose the DIFX for our Sukuk listing as it is recognized as the region’s leading international exchange across a broad range of securities, as well as being at the global forefront for Sukuk listings.”

The fourth exchangeable Sukuk to list on the DIFX, the IIG Sukuk may be redeemable in the form of IIG shares which are listed on the Kuwait stock exchange, or cash.

“ The exchangeability of the Sukuk gives us flexibility in our financial strategy as we continue to expand the scope of IIG’s business activities and generate profitability for our shareholders,” said Mr Bader.

Per E. Larsson, Chief Executive of the DIFX, said: “Sukuk issuance is expanding fast, with more than 100 issued globally last year and more than 40 already this year. Sukuk play an important role in our plans to expand the Islamic finance sector of our exchange.”

Hamed Ali, Executive Officer of the DIFX, said: “The DIFX now lists Sukuk from seven issuers in Kuwait, Saudi Arabia and the UAE. We are in talks with many more potential issuers and will expand our role in the Sukuk sector in various ways.”

IIG’s Sukuk is based on a Mudarabah structure and has been issued by IIG Funding Limited, a special purpose vehicle established in Jersey. Mr Bader said: “IIG’s goal is to be a principal participant in the rapidly growing global Islamic finance industry and to become a leading Islamic financial institution in the GCC and the broader MENA region.”

Barclays Capital was the sole lead manager and sole bookrunner of the issue.

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