Emirates Strategic Investments issues debut $600 million sukuk

Emirates Strategic Investments Company (ESIC) on Tuesday successfully priced a debut $6600 million sukuk, a Sharia-compliant bond, with a tenor of five years. The profit rate for the sukuk is 3.939 percent, 0.35 percent tighter than initial price thoughts suggested. The deal is part of a $1 billion sukuk program listed on the London Stock Exchange.

The sukuk was oversubscribed at a rate of 6.2 times with an order book of $3.7 billion. International investors were allocated 61 percent of the sukuk; the remaining 39 percent was allocated to GCC investors. Over 135 investors from over 20 countries participated.

ESIC is owned by Sheikh Mansour bin Zayed al-Nahyan, who is a member of the Abu Dhabi royal family and the owner of Manchester City football club.

Khalid Deemas Al Suwaidi, chief executive officer of ESIC, commented, “The sukuk promotes the development of capital markets and Islamic finance in the UAE, as well as setting an international benchmark for other UAE private company to follow. We are very pleased with the outcome of the sukuk and the international investor demand that we received, which reflects the UAE’s strong standing in the international community.”

First Abu Dhabi Bank and Standard Chartered Bank led the deal as joint global coordinators. These two organizations also acted as joint lead managers in tandem with Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, National Bank of Bahrain, and Warba Bank.

Simmons & Simmons acted as legal counsel for ESIC, whilst Allen & Overy acted for the banks.

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