Unicorn Investment Bank recognized for product innovation

The Bank received the award for Best Product Innovation as part of the 2007 Banker Middle East Industry Awards.

The annual Banker Middle East awards were established to recognize excellence in the regional banking industry. Nominees for the awards are shortlisted by a panel of experts from a range of institutions, including rating agencies and consulting companies, with the winners chosen through online voting on the basis of peer and client reference.

In presenting Unicorn with the Best Product Innovation award, CPI Financial, the organizers of the awards, cited the recently closed first Dar Al Arkan Real Estate Development Company (DAAR) corporate Sukuk in particular.

Launched as a US$425 million issue by ABC Islamic Bank E.C., Arab National Bank, Standard Bank Plc, Unicorn Investment Bank BSC (c) and WestLB AG, the DAAR Sukuk marked the first Sukuk issued by a Saudi corporate in the international capital markets. The Sukuk received an overwhelming response and was significantly oversubscribed, with DAAR opting to increase the issue size to US$600 million. Unicorn played a key role in bringing the transaction to the market, and in addition to its role as Co-Lead Manager, was also the Sole Structuring Agent and Shari'ah Advisor to the transaction.

The DAAR Sukuk was recently listed on the Dubai International Financial Exchange (DIFX). It is the sixth Sukuk to list on the DIFX and the first from a Saudi issuer.

Majid Al Sayed Bader Al-Refai, Managing Director and Chief Executive Officer of Unicorn, commented:

"Innovation is an integral part of Unicorn's mission, and we are honored to receive this award which recognizes our commitment and our continuous efforts to provide the market with innovative Shari'ah-compliant investment products and services. Unicorn is determined to be at the forefront of the rapid development of the Islamic financial services industry and is committed to being a market leader in Shari'ah-compliant investment banking. Innovation and new product development is essential in order to meet the growing needs of our clients and the increasing sophistication of the Islamic banking industry."

Unicorn has introduced several groundbreaking products over the last 12 months, including the KSA MBS I International Sukuk, a landmark securitization transaction on behalf of Saudi Arabia's Kingdom Installment Company (KIC) marking the first true-sale securitization in the GCC region; and an innovative US$150 million Musharaka Trust Sukuk issued on behalf of Kuwait-based Investment Dar (TID) marking the first Musharaka Sukuk structured with a put option for investors and a call option for the issuer.

The Bank is also the originator and lead sponsor of a new regional takaful company, T'azur, which will act as a holding company for investments in takaful companies. T'azur will also target conventional insurance players and transform them into takaful partners. T'azur, which aims to capitalize on economies of scale, will direct group-wide business strategy and play a key role in setting the policies of individual subsidiaries and affiliates. It is anticipated that T'azur will commence operations by the fourth quarter of 2007.