Today's Edition
DUBAI (WAM)
Nasdaq Dubai welcomed the listing of a $500 million Sukuk issued by The Arab Energy Fund (TAEF), a leading multilateral impact financial institution focused on the energy sector.
The transaction reflects the longstanding engagement between The Arab Energy Fund and Nasdaq Dubai and contributes to the depth of the exchange's Sukuk market.
Issued under TAEF's Trust Certificate Issuance Programme through APICORP Sukuk Limited, the Sukuk comprises $500 million Trust Certificates due 2031.
The senior unsecured issuance carries a profit rate of 4.686% and was priced at a spread of 70 basis points over SOFR.
The issuance attracted orders exceeding USD 900 million and was 2x oversubscribed, enabling pricing to tighten from initial guidance.
The transaction saw strong and well-diversified demand across geographies and investor types, with the investor base including high-quality institutions such as central banks, sovereigns, supranational institutions, and agencies (SSAs), underscoring the strength of TAEF's credit profile and market positioning.
The Trust Certificates are rated Aa2 by Moody's and AA+ by Fitch, reflecting The Arab Energy Fund's strong credit profile.
To mark the listing, Khalid Ali Al-Ruwaigh, Chief Executive Officer of The Arab Energy Fund, rang the market-opening bell at Nasdaq Dubai alongside Hamed Ali, Chief Executive Officer of Nasdaq Dubai and Dubai Financial Market (DFM), and senior representatives from both organisations.
Chief Financial Officer of The Arab Energy Fund, Vicky Bhatia, said, “This transaction shows both the strength of our credit profile and our ability to work through difficult market conditions. Achieving pricing at SOFR+70bps with no new issue premium, despite the challenging market, demonstrates the confidence investors have in The Arab Energy Fund and its mission.''
CEO of Nasdaq Dubai and DFM, Hamed Ali, said, “The Arab Energy Fund’s latest Sukuk listing adds to the depth of Nasdaq Dubai's Sukuk market and reflects continued activity from supranational issuers in regional debt capital markets. As the Fund's fourth listing on the exchange, the transaction highlights the role of established issuers in supporting market development and broadening investment opportunities for regional and international investors."
The latest issuance follows The Arab Energy Fund's $500 million 10-year Sukuk listing earlier this year and forms part of its diversified funding strategy to support sustainable energy development across the Arab world.
As of today, the total outstanding value of Sukuk listed on Nasdaq Dubai exceeds $98.6 billion, reinforcing its position among the world's leading venues for Islamic finance.
The total outstanding value of debt listings on the exchange has surpassed $141 billion across sovereign, supranational, financial institution and corporate issuers.
