“This sukuk listing by SIB, as one of the UAE and the region’s most respected Islamic institutions, underlines the rapid growth of the listed Islamic securities sector,” says Mohammed Abdulla, chief executive of SIB, who rang the ceremonial opening bell on Monday to celebrate the listing.

 

The five-year notes were priced at a profit rate of 2.843% or 110 bps above prevailing five-year mid-swaps. Banks and financial institutions received the lion’s share of the sukuk offering, with a 59% share, followed by fund managers and hedge funds, with 33%, supranationals and central banks, 6%, and others, 2%. Middle East investors accounted for 63% of the subscription, while investors from Asia held 23% of total, and Europe, 14%.

 

The listing maintains Dubai's expansion as the global capital of the Islamic economy. Sukuk listings on the emirate's exchanges now total $28.96 billion.

The bell-ringing took place in the presence of Essa Kazim, governor of Dubai International Financial Centre, secretary general of Dubai Islamic Economy Development Centre, and chairman of DFMM, Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, and Hamed Ali, chief executive of Nasdaq Dubai.

 

“SIB’s listing adds further momentum to the initiative to position Dubai as the global capital of the Islamic economy,” says Kazim.

 

Global sukuk issuance is expected to remain resilient this year, likely raising up to $120 billion, according to RAM Ratings.

"Nasdaq Dubai is committed to further enhancing its sukuk listing procedures and framework, to ensure streamlined access to the exchange for issuers and ongoing support post-listing. In addition, we will introduce new initiatives to meet the needs of market participants,” says Ali.

SIB was the first UAE-based Islamic bank to issue a sukuk in 2006 and since then has been very active in debt capital markets. SIB's $500 million sukuk listed on the exchange on April 2 2015. It is the second sukuk to be listed by the bank on Nasdaq Dubai, following a $500 million listing in April 2013.