London Stock Exchange welcomes Emirates Strategic Investments Company inaugural Sukuk Bond listing

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 5-year Sukuk at a profit rate of 3.939% per annum (equivalent to 215bps over the 5-year US Mid Swap Rate). 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 multisector 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 in the transaction. In terms of distribution, 61% of the Sukuk was allocated to international investors (33% to Asia, 24% to Europe and 4% to US offshore), 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.

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. ESIC’s success is expected to pave the way for other privately held entities from the UAE to access the international capital markets. We are very pleased with the successful outcome 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.

Quick facts

Track
Market: ISM
Instrument market cap (£m)
-
Listing/Admission to trading
30 Jul 2019
Looking for new and recent issues?

More recent

108.44
London Stock Exchange welcomes the Rt Hon John Glen, Economic Secretary to the Treasury, celebrating HM Treasury UK Sovereign Sukuk

The UK Government today celebrated the listing of its second sovereign Sukuk on London Stock Exchange. The 5-year offering was for £500 million, more than double the size of the UK Government’s debut issuance and the largest sterling Sukuk issuance to date. The UK’s second Sukuk saw strong investor participation, with demand from a diverse group of high-quality institutional investors from the

Learn more
97.84
London Stock Exchange welcomes Cornerstone FS plc to AIM

The Ordinary Shares of Cornerstone FS plc were admitted to trading at 8.00am on Tuesday 6 April 2021, under the stock market ticker CSFS. The placing price was 61p per share, resulting in a market capitalisation of £12.4 million.

Cornerstone FS plc, is a cloud-based provider of international payment, currency risk management and electronic account services to SMEs. Its strategy is to

Learn more
133.2
London Stock Exchange welcomes Deliveroo Holdings plc to the Main Market

Today, the online food delivery platform Deliveroo has made a significant step in the execution of its ambitious growth plans as it begins trading on the Main Market of London Stock Exchange, having raised net proceeds of around £1.5bn. Deliveroo’s admission is the biggest in London since 2011 and the largest UK technology listing of all time.

Founded in 2013 by Will Shu, Deliver

Learn more
77.64
London Stock Exchange welcomes Digital 9 Infrastructure plc to the Specialist Fund Segment of the Main Market

London Stock Exchange welcomed Digital 9 Infrastructure plc to the Specialist Fund Segment of the Main Market today, after it raised gross proceeds of £300 million in its Initial Public Offering.

Digital 9 Infrastructure plc (DGI9) is a newly established, externally managed investment trust. It will invest in a range of digital infrastructure assets which deliver a reliable, functioni

Learn more