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DUBAI/ WAM
Nasdaq Dubai welcomed the maiden Sustainability Sukuk issuance of US$750 million by Emirates Islamic, one of the leading Islamic financial institutions in the UAE.
The 5-Year issuance, which raised US$750 million as part of the US$2.5 billion Certificate Issuance Programme, marks a significant milestone in the bank’s sustainability journey and Islamic finance industry. With this latest admission, the total value of Sukuk listings by Emirates Islamic on the exchange reached US$2.02 billion through four listings. The issuances reiterate Nasdaq Dubai’s growing portfolio of listed debt securities and its consistent focus on facilitating innovative financial instruments.
The issuance witnessed robust demand from investors across different regions, with 44 percent of orders coming from outside of MENA region. The strong order book, which exceeded US$2.10 billion i.e., an oversubscription of 2.8 times, allowed the bank to tighten the expected profit rate to 5.431 percent per annum, at a spread of 100 basis points over 5-Year US Treasuries. This Sustainability Sukuk was issued in line with Emirates NBD Group’s Sustainable Finance Framework and in compliance with Shariah rules and principles as determined by Emirates Islamic’s Internal Shariah Supervision Committee.
To commemorate the successful listing, Hesham Abdulla Al Qassim, Chairman, Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD, rang the bell at the market-opening ceremony at Nasdaq Dubai, along with Hamed Ali, CEO of Nasdaq Dubai and DFM.
Hesham Al Qassim commented, “The listing of our first Sustainability Sukuk on Nasdaq Dubai represents our dedication to be the pioneering Shariah-compliant bank for customers, people, and communities, as well as our continuing commitment to fostering sustainability. We are proud to partner with Nasdaq Dubai to bringing to market a wide range of financial products to our customers, helping to foster a future built on sustainable growth in accordance with Islamic values. Emirates Islamic is committed to reducing its environmental impact, in line with the UAE Net Zero by 2050.”
Hamed Ali added, “Nasdaq Dubai welcomes Emirates Islamic’s debut Sustainability Sukuk, marking another milestone in our strong partnership. Such innovative listings not only enhance our role as the leading global hub for Islamic finance but also reinforces our commitment to driving sustainable investments and fostering a robust and diverse financial ecosystem.”
As a leading global centre for Sukuk listings, Dubai boasts an outstanding value of US$93 billion in Sukuk issuances. Following Emirates Islamic’s latest addition, 44 percent of these listings by value are from UAE issuers, while 56 percent are from overseas issuers.
The exchange continues to solidify its status as the premier platform regionally and globally for both fixed income and ESG-related listings. It holds an outstanding total value of US$129 billion in listed fixed income and US$29 billion in ESG listings, of which sustainability issuances account for US$9.5 billion, including the recent listing of Emirates Islamic.