DIFC Investments, the investment arm of the Dubai International Financial Centre (DIFC), today (June 7) announced the issue of a $1.25 billion Sukuk.

The sukuk is the largest rated and the largest Straight Sukuk to come out of the region, the company said. 

The five-year Sukuk, the first one to be entirely documented under DIFC Law, attracted a high-level of international participation, with 67 per cent of the Sukuk’s subscription originating outside the region. 

Of the $1.25 billion, 20 per cent comes from Asian investors, 47 per cent from European investors and 33 per cent from investors in the Middle East. The total breakdown was 54 per cent to banks, 35 per cent to fund managers, 7 per cent to central banks and government agencies and 4 per cent to insurance and pension funds.
 
DIFC Governor Dr Omar Bin Sulaiman said: “This landmark issue exemplifies the DIFC’s mission to be a catalyst for economic growth, development and diversification. The interest shown in this Sukuk illustrates Dubai’s stature as an internationally recognized financial centre and a global leader in Islamic Finance.”

Bisher Barazi, Managing Director, DIFC Investments, commented, “We were overwhelmed with the level of demand in each of the financial capitals we visited and the diversity of the international participants.  As a result we increased the size of the issue from our original plans.  We appreciate the trust and confidence our investors have shown in the DIFC.”

The Sukuk received ratings of A1 from Moody’s and A+ from Standard & Poor’s.

Deutsche Bank AG and Goldman Sachs were Joint Lead Managers and Joint Bookrunners.  The Co-Managers were CIMB Berhad, Dubai Islamic Bank PJSC, Emirates Bank International PJSC, Emirates Islamic Bank PJSC, Mashreqbank psc and National Bank of Dubai PJSC.  -TradeArabia News Service