UAE-based Jebel Ali Free Zone (Jafza), the Economic Zones World’s flagship operation, has priced the issuance of USD650 million sukuk certificates due 2019, marking the company’s first US dollar-denominated issuance and its first transaction in the international debt capital markets since 2007.

 

The transaction saw strong demand from regional and international investors, with the order book 3.1x subscribed. The order book was well-diversified, both in terms of investor type and geography. European investors accounted for 26 percent of the allocation, Asian accounts seven percent, US offshore investors two percent and Middle Eastern investors took up the balance of 65 percent.

 

The sukuk was admitted to Nasdaq Dubai’s market together with the listing by the Dubai Financial Services Authority (DFSA), the listing authority in the Dubai International Financial Centre (DIFC).

 

The sukuk structure involves trust certificates issued as trustee by JAFZ sukuk (2019) under a wikala agency framework.  

 

Jafza’s listing boosts Nasdaq Dubai’s status as the largest in the Middle East for Islamic bonds, bringing the total nominal value of its listed sukuk to USD7.1 billion.

 

Global sukuk issuance reached USD43.5 billion in the first quarter of 2012, up 55 percent from the same period of 2011, according to Nasdaq Dubai figures.  

 

Salma Hareb, CEO of JAFZ, said: “Jafza has once again demonstrated a strong and sustainable long-term business model.  This refinancing success confirms the strength of Jafza as global players”. 

 

Established in 1985, Jafza is spread over an area of 57 sq. kms and is home to over 6,700 companies, including over 120 of the Fortune Global 500 enterprises, from across the world.