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The Arab Energy Fund (TAEF) has priced its $500 million, five-year senior unsecured sukuk at a profit rate of 4.686% on strong investor demand.
The Reg S trust certificates were priced at par with a spread of 70 bps over SOFR, tightening from initial price thoughts (IPTs) of SOFR plus 80 bps. Final pricing equates to 41.9 bps over the US Treasury’s 4.125% May 2031 benchmark, with a re-offer yield of 4.267%.
The sukuk will mature on June 16, 2031 and is scheduled to settle on June 16, 2026.
Books exceeded $900 million, including around $80 million from joint lead managers, after peaking above $1 billion earlier allowing the issuer to print at the tight end of guidance.
The sukuk is issued under APICORP’s trust certificate issuance programme via APICORP Sukuk Limited, using a wakala-murabaha structure. It carries expected ratings of Aa2 from Moody’s and AA+ from Fitch, in line with the obligor’s high-grade credit profile (Aa2/AA-/AA+).
Proceeds will be used for general corporate purposes.
The certificates will be listed on Euronext Dublin and Nasdaq Dubai, with settlement through Euroclear and Clearstream.
Bank ABC, BMO Capital Markets, Citi, Credit Agricole CIB, Emirates NBD Capital, KFH Capital, Standard Chartered (B&D) and the Islamic Corporation for the Development of the Private Sector acted as joint lead managers and bookrunners.
(Writing by Brinda Darasha; editing by Seban Scaria)
