• The five-year Sukuk carries a profit rate of 4.686% and was priced at a spread of 70 basis points over SOFR.
  • The issuance was 2x oversubscribed, with the order book exceeding USD 900 million.
  • The total value of currently outstanding Sukuk listed on Nasdaq Dubai now exceeds USD 98.6 billion.

Dubai, UAE: Nasdaq Dubai welcomed the listing of a USD 500 million Sukuk issued by The Arab Energy Fund (TAEF), a leading multilateral impact financial institution focused on the energy sector. The transaction reflects the longstanding engagement between The Arab Energy Fund and Nasdaq Dubai and contributes to the depth of the exchange's Sukuk market.

Issued under TAEF's Trust Certificate Issuance Programme through APICORP Sukuk Limited, the Sukuk comprises USD 500 million Trust Certificates due 2031. The senior unsecured issuance carries a profit rate of 4.686% and was priced at a spread of 70 basis points over SOFR.

The issuance attracted orders exceeding USD 900 million and was 2x oversubscribed, enabling pricing to tighten from initial guidance. The transaction saw strong and well-diversified demand across geographies and investor types, with the investor base including high-quality institutions such as central banks, sovereigns, supranational institutions, and agencies (SSAs), underscoring the strength of TAEF's credit profile and market positioning. The Trust Certificates are rated Aa2 by Moody's and AA+ by Fitch, reflecting The Arab Energy Fund's strong credit profile.

To mark the listing, Khalid Ali Al-Ruwaigh, Chief Executive Officer of The Arab Energy Fund, rang the market-opening bell at Nasdaq Dubai alongside Hamed Ali, Chief Executive Officer of Nasdaq Dubai and Dubai Financial Market (DFM), and senior representatives from both organizations.

Vicky Bhatia, Chief Financial Officer of The Arab Energy Fund, said: “This transaction shows both the strength of our credit profile and our ability to work through difficult market conditions. Achieving pricing at SOFR+70bps with no new issue premium, despite the challenging market, demonstrates the confidence investors have in The Arab Energy Fund and its mission”.

Hamed Ali, CEO of Nasdaq Dubai and DFM, said: “The Arab Energy Fund’s latest Sukuk listing adds to the depth of Nasdaq Dubai's Sukuk market and reflects continued activity from supranational issuers in regional debt capital markets. As the Fund's fourth listing on the exchange, the transaction highlights the role of established issuers in supporting market development and broadening investment opportunities for regional and international investors."

The latest issuance follows The Arab Energy Fund's USD 500 million 10-year Sukuk listing earlier this year and forms part of its diversified funding strategy to support sustainable energy development across the Arab world.

As of today, the total outstanding value of Sukuk listed on Nasdaq Dubai exceeds USD 98.6 billion, reinforcing its position among the world's leading venues for Islamic finance. Total outstanding value of debt listings on the exchange have surpassed USD 141 billion across sovereign, supranational, financial institution and corporate issuers.

About The Arab Energy Fund:

The Arab Energy Fund (The Fund) is a multilateral impact financial institution focused on the MENA energy and utility sectors, established in 1974 by ten Arab oil-exporting countries. The Fund’s mission is to support the energy ecosystem with debt and equity solutions to enable energy security and sustainability and to develop local value chains and services in the MENA region. The Arab Energy Fund creates impact by contributing to economic prosperity and enabling local communities via talent development and knowledge creation. The Fund offers a comprehensive range of funding solutions across the entire energy value chain to leading public and private sector business partners in over 35 markets. The Arab Energy Fund applies best-practice ESG principles across all operations, with environmental and socially linked projects comprising c.20% of its USD 5.8bn loan portfolio. The Arab Energy Fund is the only energy-focused financial institution in the MENA region rated ‘Aa2’ by Moody’s, ‘AA+’ by Fitch and ‘AA-’ by S&P.

About Nasdaq Dubai:  

Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS). The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA).

For further information, please contact:
Noora Al Soori
Communications and Public Relations
Dubai Financial Market
Tel: +971 4 305 5437
E: nalsoori@dfm.ae

Shruti Choudhury                                                                                             
Associate Director                                                     
Edelman Smithfield                                                         
M: +971 54 586 7874                                                  
E: dfmedelmansmithfield@edelman.com