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Sheikh Mansour’s ESIC debuts $600m sukuk

Sheikh Mansour’s ESIC debuts $600m sukuk
Sheikh Mansour Bin Zayed Al Nahyan

UAE - Mubasher: Emirates Strategic Investments Company (ESIC), owned by Sheikh Mansour Bin Zayed Al Nahyan, announced the launching of $600 million in debut Sukuk.

The sukuk issuance has a tenor of five years at a profit rate of 3.939% per annum, according to a press release.

ESIC has issued the senior unsecured certificates under its recently established $1 billion Sukuk programme listed on the London Stock Exchange (LSE).

The sukuk was oversubscribed 6.2 times with a $3.7 billion orderbook and the participation of over 135 investors from over 20 countries, ESIC said.

Almost 61% of the Sukuk was allocated to international investors; 33% to Asia, 24% to Europe, and 4% to the US, while 39% was allocated to GCC investors, the release highlighted.

The sukuk launch came after ESIC’s integrated marketing strategy which aimed at introducing its credit to the international fixed income community, where a senior management delegation met with investors in Singapore, Hong Kong, Abu Dhabi, Dubai, and London.

Khalid Deemas Al Suwaidi, CEO of ESIC, commented: “Under the visionary leadership of His Highness Sheikh Mansour Bin Zayed Al Nahyan, ESIC was established to support the Abu Dhabi Economic Vision 2030 and other strategic initiatives of the UAE.”

“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,” he added.

The transaction was arranged by First Abu Dhabi Bank (FAB) and Standard Chartered Bank as joint global coordinators.

Bank ABC, Dubai Islamic Bank (DIB), Emirates NBD Capital, First Abu Dhabi Bank (FAB), National Bank of Bahrain, Standard Chartered Bank, and Warba Bank acted as joint lead managers.

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

ESIC, the multi-sector investment company, is the first corporate from Abu Dhabi to access the market in 2019, allowing it to fully capitalize on the overwhelming investor demand for Abu Dhabi credits.

Earlier this month, Moody's Investors Service announced it had assigned ESIC’s first-time long-term issuer rating at Baa3, with a stable outlook.