Nasdaq Dubai Lists Groundbreaking $500M Sukuk
Nasdaq Dubai celebrates a milestone with the listing of Emirates Islamic's $500 million Sustainability-Linked Sukuk, marking a global first.
Summary
Emirates Islamic's $500 million Sustainability-Linked Sukuk, the world's first of its kind, has been successfully listed on Nasdaq Dubai, highlighting the growing appeal of sustainable Islamic finance.
In a landmark event, Nasdaq Dubai has successfully listed Emirates Islamic's USD 500 million Sustainability-Linked Financing Sukuk. This listing is not just a significant achievement for Emirates Islamic but also marks a major milestone in the global Islamic finance industry, being the world’s first Sustainability-Linked Sukuk.
The issuance of this Sukuk under Emirates Islamic’s USD 4 billion Sukuk Programme underscores the bank’s leadership in sustainable Islamic finance. This strategic move aligns with the UAE’s broader sustainability agenda, particularly its Net Zero 2050 ambitions. The Sukuk attracted substantial international investor interest, with orders reaching USD 1.2 billion, an oversubscription of 2.4 times. This robust demand enabled the bank to tighten the profit rate to 4.540% per annum, with a spread of 95 basis points over 5-year US Treasuries.
The successful listing was marked by a bell-ringing ceremony at Nasdaq Dubai, attended by key figures such as Hesham Abdulla Al Qassim, Chairman of Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD, and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM). Al Qassim highlighted that the listing underscores Emirates Islamic’s financial strength and commitment to providing advanced, Shari’ah-compliant solutions that appeal to a diverse international investor base.
Hamed Ali, CEO of Nasdaq Dubai and DFM, remarked that this listing reinforces Dubai’s position as a leading global hub for Islamic and sustainable capital markets. The listing not only boosts Nasdaq Dubai's stature but also emphasizes the growing importance and appeal of sustainable finance solutions globally.
From an investment perspective, the successful oversubscription and the strategic alignment with global sustainability goals make this Sukuk an attractive prospect. The robust demand and favorable profit rate indicate strong investor confidence in Emirates Islamic’s financial instruments. Given these factors, investors might consider a 'buy' recommendation for those looking to invest in sustainable finance within the Islamic banking sector.
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Summary
Nasdaq Dubai has announced the listing of Emirates Islamic's USD 500 million Sustainability-Linked Financing Sukuk, marking the first issuance of its kind globally. This listing has pushed the total value of outstanding Sukuk on Nasdaq Dubai beyond USD 100 billion. Issued under Emirates Islamic's USD 4 billion Sukuk Programme, the Sukuk highlights the bank's leadership in sustainable Islamic finance and supports the UAE's sustainability goals. The offering attracted significant international investor interest, with orders reaching USD 1.2 billion, which is 2.4 times oversubscribed. This allowed Emirates Islamic to set the profit rate at 4.540% per annum. The listing was celebrated by Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, and Hamed Ali, CEO of Nasdaq Dubai and DFM, who emphasized the significance of this achievement for the Islamic finance industry and Dubai's role as a global hub for sustainable capital markets.
