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The Arab Energy Fund (TAEF), has mandated a group of banks to arrange fixed income investor calls starting June 9, 2026.
Following the investor calls, TAEF may proceed with a U.S. dollar-denominated benchmark-sized senior unsecured sukuk issuance of $500 million under its trust certificate issuance programme, subject to market conditions. The proposed sukuk would carry a five-year tenor, maturing in June 2031.
Initial price guidance is at SOFR mid-swaps plus 80 bps.
The institution has appointed Bank ABC, BMO Capital Markets, Citi, Crédit Agricole CIB, Emirates NBD Capital, KFH Capital, Standard Chartered (B&D) and the Islamic Corporation for the Development of the Private Sector as joint lead managers and bookrunners for the exercise.
The planned issuance is expected to be rated Aa2 by Moody’s and AA+ by Fitch. TAEF is currently rated Aa2 (stable) by Moody’s, AA- (stable) by S&P, and AA+ (negative) by Fitch.
In January, the energy fund raised $500 million with a 10-year sukuk offering, priced at 85 bps over SOFR mid-swaps with books topping $1.6 billion.
(Writing by Brinda Darasha; editing by Seban Scaria)
