KFH Capital arranges $1bn sukuk issue for DIB

KFH Capital arranges $1bn sukuk issue for DIB
The issuance was oversubscribed by 175%
DIB DIB -1.19% 5.00 -0.06

Kuwait – Mubasher:  KFH Capital, the investment arm of KFH Group, on Sunday stated that the bank has arranged the issuance of $1 billion sukuk for Dubai Islamic Bank (DIB), said KFH Capital’s chief investment banking officer Abdullah Al-Haddad.

Acting as a lead arranger, KFH Capital arranged the sukuk issuance of DIB’s $5 Billion Sukuk programme.

The sukuk transaction was arranged by the Kuwait-based KFH Capital in collaboration with seven global banks, Al-Haddad revealed.

Based on the Wakala structure, the recent sukuk issue is projected to be rated at ‘A3’ by Moody’s and ‘A’ by Fitch and listed on the Irish Stock Exchange and NASDAQ Dubai, Al-Haddad commented.

With a 5-year tenor and a return of 3.625%, the “issuance was priced at 115 bps above the five-year benchmark rate. Issuance marketing started at 130 bps levels and narrowed to 115 bps as the order book started building up,” according to KFH Capital statement.

The issuance was oversubscribed by 175% with orders from over 115 investors, mainly from the Middle East, the company unveiled.  

“The initial trend of the sukuk market this year indicates that the issuance trend is expected to continue favourable in the first quarter of this year due to increased interest and trust by companies and governments,” Al-Haddad concluded.

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Source: Mubasher