Abu Dhabi, United Arab Emirates – On 23 July 2019, Emirates Strategic Investments Company (“ESIC”), 100% owned by His Highness Sheikh Mansour Bin Zayed Al Nahyan, rated Baa3 by Moody’s with a stable outlook, successfully priced a debut USD 600 million Sukuk with a tenor of 5 years at a profit rate of 3.939%, which was 35bps tighter than initial price thoughts. The senior unsecured certificates were issued under ESIC’s recently established USD 1bn Sukuk programme, which is listed on the London Stock Exchange. ESIC is a multi-sector investment company with a diversified portfolio in the UAE.

Investor demand for the Sukuk was exceptionally strong as evidenced by a USD 3.7bn orderbook, representing an oversubscription rate of 6.2 times. More than 135 investors from over 20 countries participated. 61% of the Sukuk was allocated to international investors (33% to Asia, 24% to Europe and 4% to the US), and 39% was allocated to GCC investors. By type, 62% were fund managers, 25% were banks, 9% were private banks and 4% were central banks and pension funds. The transaction followed a comprehensive marketing strategy aimed at introducing ESIC’s credit to the international fixed income community. A senior management delegation met with investors in Singapore, Hong Kong, Abu Dhabi, Dubai and London. ESIC is the first corporate from Abu Dhabi to access the market in 2019, allowing it to fully capitalize on the overwhelming investor demand for Abu Dhabi credits. More importantly, ESIC’s success is expected to pave the way for other privately held entities from the UAE to access the international capital markets. 

Mr. Khalid Deemas Al Suwaidi, Chief Executive Officer of ESIC, commented: “Under the visionary leadership of His Highness Sheikh Mansour Bin Zayed Al Nahyan, ESIC was established to support the Abu Dhabi Economic Vision 2030 and other strategic initiatives of the UAE. The Sukuk promotes the development of capital markets and Islamic finance in the UAE, as well as setting an international benchmark for other UAE private company to follow. We are very pleased with the outcome of the Sukuk and the international investor demand that we received, which reflects the UAE’s strong standing in the international community”. 

The deal was led by First Abu Dhabi Bank and Standard Chartered Bank as Joint Global Coordinators. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, National Bank of Bahrain, Standard Chartered Bank and Warba Bank acted as Joint Lead Managers. Allen & Overy acted as legal counsel for the banks, and Simmons & Simmons acted for ESIC.

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About Emirates Strategic Investment Company

Emirates Strategic Investment Company LLC (ESIC) is a leading investment company, owned by His Highness Sheikh Mansour Bin Zayed Al Nahyan. The company offers a diversified portfolio of assets across the UAE and global markets with a primary focus on real estate, equity investments and other specialised investments. For its strong financial profile and a good base of recurring income from investment properties and equity investments, ESIC has been assigned a Baa3 long-term issuer rating by Moody's Investors Service.

For more information, please visit: https://www.esic.ae/ 

Media Contact:
Vernon Saldanha
Procre8 for ESIC
Email: vernon@procre8.biz
Tel: +971 52 288 0850

© Press Release 2019

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