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Investor demand in total reaching to US$ 800 million, about 1.6 times of the offered amount.
Sukuk has a maturity of 5 years and will pay a fixed coupon of 4.375% per annum.
Dubai, UAE - Ezdan Holding Group Q.S.C. priced its inaugural Sukuk transaction in the debt capital markets with a very successful US$ 500 million 5 year Sukuk issue on 11 May 2016. The transaction attracted an order-book of more than US$ 800 million, with 71 investors participating.
H.E. Sheikh Dr. Khalid bin Thani bin Abdullah Al Thani, Chairman of Ezdan Group Holding, said: "The size of the coverage, which almost doubled in a record time is nothing but a reflection of the significant confidence that our partners in the financial community have towards the Group. Furthermore, this enhances the success of our strategy which is aimed at strengthening the Group's investment locally and globally over the next few years.
H.E. added that the process of Sukuk transaction is considered as one of the tools utilized by Ezdan Holding in a substantial deal within the international credit capital market with the aim to expand our investment and achieve a positive impact against the Group's investment size and returns.
Commenting on the deal, Mr. 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 US$ 800 million, around 1.6 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."
Investors from the Middle East took 68% of the issuance, with European investors subscribing for 21% and Asian investors taking 11%. In terms of distribution by investor type, banks took 47% of the issue amount, followed by fund managers with 27%, private banks with 19% and other institutional investors with 7%.
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".
Ahmed Abdelaal, Regional Head of Client Coverage, HSBC MENA, added: "HSBC is delighted to support the inaugural US$ 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.
Mr. 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 is the first milestone in Ezdan's planned $2 billion Sukuk two-year programme announced on 3 May 2016. It was concluded after an extensive investor roadshow in Hong Kong, Singapore, the UAE and London, United Kingdom.
Highlights of the transaction:
· The Sukuk represents the first ever international issuance by a private sector Qatari corporate in the debt capital markets
· The issuance is also the first bond or Sukuk issuance from Qatar and in the international market this year.
· Ezdan launched the Sukuk on the back of an international roadshow, visiting key investors in Asia, the Middle East and Europe.
· HSBC and Mashreq Bank were the Joint Global Coordinators for the issue and were joined by Abu Dhabi Islamic Bank, Barwa Bank, Emirates NBD Capital, Qatar First Bank and QInvest as Joint Lead Managers
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About Mashreq
Mashreq is the oldest bank in the UAE with an extensive branch network across the Emirates. Mashreq is also present in 11 countries outside UAE with 21 overseas branches and offices spread across Europe, USA, Asia and Africa providing a comprehensive range of international financial services. Established in 1967, Mashreq has established itself as a market leader by delivering award-winning customer experiences and innovative thinking across its financial products and services. Mashreq's various banking divisions cater to its own unique specialisms and expertise and include: Corporate Banking, Retail Banking, International Banking, and Innovative Treasury Services. The bank also allows for customers to experience Sharia'h Compliant financial banking solutions. As a leading financial institution, Mashreq is committed to supporting every community it serves. In the UAE, the bank pays particular attention to recruiting, training, and developing UAE National employees. Mashreq is the only financial institution in the UAE to have been awarded the CSR Label by Dubai Chamber for five years in a row.
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Email: HudaI@mashreq.com Email: NssrinK@mashreq.com
© Press Release 2016
