Nasdaq dubai: Nasdaq Dubai has announced the listing of a USD 500 million Sukuk issued by The Arab Energy Fund (TAEF), a prominent multilateral impact financial institution with a focus on the energy sector. This transaction marks a significant milestone in the longstanding partnership between The Arab Energy Fund and Nasdaq Dubai, contributing to the depth of the exchange's Sukuk market.
According to Emirates News Agency, this Sukuk is issued under TAEF's Trust Certificate Issuance Programme through APICORP Sukuk Limited. It includes USD 500 million Trust Certificates due in 2031, carrying a profit rate of 4.686% and priced at a spread of 70 basis points over SOFR. The issuance attracted orders exceeding USD 900 million, achieving a 2x oversubscription which enabled pricing to tighten from initial guidance. The investor base for this issuance is comprised of high-quality institutions such as central banks, sovereigns, supranational institutions, and agencies (SSAs), highlighting TAEF's strong credit profile and market positioning.
The Trust Certificates have been rated Aa2 by Moody's and AA+ by Fitch, reflecting the robust credit standing of The Arab Energy Fund. To commemorate the listing, Khalid Ali Al-Ruwaigh, CEO of The Arab Energy Fund, rang the market-opening bell at Nasdaq Dubai alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), and other senior representatives.
Vicky Bhatia, CFO of The Arab Energy Fund, stated that the transaction underscores the strength of their credit profile and their capability to navigate challenging market conditions. Achieving pricing at SOFR+70bps without a new issue premium, despite market difficulties, illustrates the confidence investors have in The Arab Energy Fund and its mission.
Hamed Ali, CEO of Nasdaq Dubai and DFM, remarked that this latest Sukuk listing by The Arab Energy Fund adds to the depth of Nasdaq Dubai's Sukuk market and reflects the continued activity from supranational issuers in regional debt capital markets. As the Fund's fourth listing on the exchange, this transaction highlights the role of established issuers in supporting market development and expanding investment opportunities for regional and international investors.
This issuance follows The Arab Energy Fund's USD 500 million 10-year Sukuk listing earlier this year and is part of its diversified funding strategy aimed at supporting sustainable energy development across the Arab world. As of now, the total outstanding value of Sukuk listed on Nasdaq Dubai exceeds USD 98.6 billion, reinforcing its status as one of the world's leading venues for Islamic finance. The total outstanding value of debt listings on the exchange has surpassed USD 141 billion across sovereign, supranational, financial institutions, and corporate issuers.
