Nasdaq Dubai welcomes listings of $2.5b sukuks by Indonesia
Indonesia now has three green sukuk listings on Nasdaq Dubai, including the world’s first sovereign green sukuk issuance of $1.25 billion that listed in March 2018
Nasdaq Dubai has welcomed the listing of three sukuk issued by the government of Indonesia with a total value of $2.5 billion.
The sukuk achieved nearly 6.7 times subscription by investors, including international investors in Asian and Middle East countries.
The listings comprise a 10-year issuance of one billion US dollars and two issuances of $750 million each, one of a five-year maturity and the other for 30 years. The capital raised will fund the economic and social development of Indonesia.
The five-year $750 million sukuk is a green issuance that is earmarked for sustainable development projects.
Indonesia now has three green sukuk listings on Nasdaq Dubai, including the world’s first sovereign green sukuk issuance of $1.25 billion that listed in March 2018.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “Nasdaq Dubai is strengthening its support for the sukuk sector through outreach initiatives in our region and internationally to issuers who can benefit from the high global profile that the exchange provides. We are preparing for a wide range of new listings in coming months, drawing on our close relationships within the Islamic capital markets.”
Hamed Ali, Chief Executive of Nasdaq Dubai,
File Photo/ WAM said: “Dubai’s longstanding capital markets partnership with Indonesia supports the economic development of both nations and the growth of the Sharia’a-compliant financial markets across the world. As we increase our focus on promoting financial markets activity in the sustainable sector, we are delighted to welcome Indonesia’s latest green sukuk together with its other listings.”
Nasdaq Dubai now hosts six green and one sustainable sukuk with a total value of 6.55 billion US dollars, underlining its leading regional role in the Environmental, Social and Governance (ESG) sector.
The Indonesian government is the largest sukuk issuer on Nasdaq Dubai by both value and number of listings, with securities totalling $17.5 billionfrom 14 issuances. The latest three Indonesian government sukuk listings took place on June 23rd, 2020.
Indonesia’s green sukuk framework is rated Medium Green by CICERO.
Nasdaq Dubai is the international financial exchange serving the region between Western
Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS). The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
Nasdaq Dubai welcomed the listing on Tuesday of a $300 million sukuk issued by Dubai Islamic Bank (DIB).
The issuance was a tap on a one billion US dollar sukuk that listed on Nasdaq Dubai on June 16th, 2020. DIB earmarked the funds raised to support its customers and the business community as economies start to overcome challenging market conditions.
DIB is the leading Uae-based sukuk issuer by value on the region’s international exchange with a total of $6.3 billion including the latest 300 million US dollar listing.
Dubai is one of the largest centres for sukuk listings in the world with a total listed value now standing at $71.09 billion. By value 43 per cent of the listings are from UAE issuers and 57 per cent from overseas issuers. Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment.
The exchange currently lists shares, derivatives, sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).
Nasdaq Dubai welcomed the listing of a 500 million US dollar sukuk by Sharjah Islamic Bank (SIB). The capital raised will support SIB’S activities and strategic development to cater to its customers in corporate, investment and retail banking.
The five-year sukuk was subscribed 72 times by regional and international investors with 150 investors showing their interest It brings the total value of SIB sukuk listings on Nasdaq Dubai to $2 billion following listings of 500 million US dollars each in 2016, 2018 and 2019 Mohammed Abdulla, Chief Executive Officer of SIB said: “The very positive response from the market to our latest sukuk reflects investors’ strong belief in SIB’S strategy as we develop our activities across all our areas of business for a wide range of businesses and individuals.