DOHA: Ezdan Holding Group Q.S.C. has priced its inaugural Sukuk transaction in the debt capital markets with a very successful $500m 5-year Sukuk issue. The transaction attracted an order-book up to $837m, with 71 investors participating.
Investors from the Middle East took 68 percent of the issuance, with European investors subscribing for 21 percent and Asian investors taking 11 percent. In terms of distribution by investor type, banks took 47 percent of the issue amount, followed by fund managers with 27 percent, private banks with 19 percent and other institutional investors with 7 percent.
Commenting on the deal, Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman of Ezdan Holding Group stated that "the coverage amount has almost doubled than the offered in a record time, which is an indication that Ezdan Holding Group is a trustworthy and reliable entity in the world of finance. Additionally, this would boost our strategy to reinforce the Group's investments domestically and globally over the next few years."
Sheikh Dr Khalid added that the process of Sukuk issue is regarded one of the means Ezdan Holding Group used as a remarkable transaction in the debt capital markets worldwide, aiming at expanding our investments and stimulating the Group's investments and their returns.
Ali Mohammed Al Obaidli, Group CEO of Ezdan Holding said, "We are very pleased at the excellent market reception to Ezdan's pioneering Sukuk issue. The highly successful offering demonstrates the confidence which international investors place in the Group and confirms the access to funding which our institution enjoys from the Islamic Finance Market. Investors' strong interest resulted in the order book reaching to $ 837 million, around 1.67 times of the offer amount. This is a highly successful result that further confirms the credibility of Ezdan and the investors' confidence in the promising outlook for the Group."
Ahmed Abdelaal, Regional Head of Client Coverage, HSBC MENA, added: "HSBC is delighted to support the inaugural $ 500 million 5-year Sukuk transaction. It is a tremendous accomplishment for the Group, and marks another milestone in the journey of Ezdan. It also plays to the strengths of the Qatar market as it further attracts opportunities for international investors.
Abdelaal added: "As one of the joint Lead Managers and Bookrunners for the Sukuk, this transaction showcases HSBC's capabilities in growing large local businesses as they explore international financing solutions."
The transaction, which announced on 3 May 2016, is the first milestone in Ezdan's $2bn Sukuk programme. It was concluded after an extensive investor roadshow in Hong Kong, Singapore, the UAE and London, United Kingdom.
Jan- Willem Sudmann, Group Head of International Banking Group, Mashreqbank psc said "I wish to congratulate the management team at Ezdan for taking a giant step in successfully closing its debut sukuk issuance. Mashreq played a pivotal role in leading Ezdan to the door-steps of capital markets, as the global coordinator and JLM & Bookrunner. Mashreq's long and mutually rewarding relationship with Ezdan continues, having partnered with them on several capital raising deals over the recent past. We are confident the Ezdan shall continue to deliver upon its promising outlook".
Khalid Al-Subeai, Group CEO, Barwa Bank, said: "This is a landmark transaction for a leading Qatari name and successfully closing it within a volatile period for the capital markets is a tribute to the quality of the Issuer. The Ezdan Management team have shown great vision over the past few years in diversifying Ezdan's funding sources, with this Sukuk issuance's success being testament to that strategy".
© The Peninsula 2016
