Strong investor interest for ICD's new $600mln sukuk on Nasdaq Dubai

Listing three times oversubscribed; investors from Europe, Asia, Middle East

  
Nasdaq Dubai welcomes listing of $600 million Sukuk by Islamic Corporation for the Development of the Private Sector (ICD PS). Image courtesy Dubai Media Office Twitter handle.

Nasdaq Dubai welcomes listing of $600 million Sukuk by Islamic Corporation for the Development of the Private Sector (ICD PS). Image courtesy Dubai Media Office Twitter handle.

The latest listing of a multi-million-dollar sukuk on Nasdaq Dubai by the private sector arm of the Islamic Development Bank (IsDB) has received strong investor interest, an official said on Monday.

The Islamic Corporation for the Development of the Private Sector (ICD) has recently issued a five-year $600 million sukuk, bringing the total value of sukuk listed in Dubai to 74.05 billion dollars. In a statement, the organisation said the new issuance has been approximately three times oversubscribed, with the orderbook seeing investors from Europe, Asia and the Middle East.

“We received strong investor interest in our new sukuk issuance from a wide range of constituencies including fund managers, commercial and private banks and central banks – demonstrating their confidence and support for ICD’s strategy and initiatives in promoting private sector activity,” said Ayman Sejiny, chief executive officer of ICD.

The latest sukuk is ICD’s second issuance, following a $300 million listing in 2016, also on Nasdaq Dubai.

“This new listing by a prominent multilateral entity adds further momentum to the growth of Dubai as the global capital of the Islamic economy,” said Abdul Wahed Al Fahim, chairman of Nasdaq Dubai.

ICD is looking to raise funds to support its development activities within its 55 member countries which include creating competition, promoting entrepreneurship, creating jobs and export opportunities.

About 4 percent of the issuance has been allocated to investors in the United Kingdom/Europe, 21 percent to Asia, and 75 percent to the Middle East. By investor type, fund managers were allocated 13 percent, banks/private banks 57 percent, agencies/central banks 29 percent and others 1 percent.

(Writing by  Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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