Allen & Overy advises Government of Dubai on its inaugural sukuk issue

The sukuk was issued in two tranches with an aggregate face amount of approximately $2bn under anewly established $2.5bn Trust Certificate Issuance Programme. The two tranches, issued through Dubai DOF Sukuk Limited and structured as sukuk al-ijara, consisted of $1.25bn 6.396 per cent. TrustCertificates due 2014 and Dhs2.5bn Floating Rate Trust Certificates due 2014.

In addition to advising Dubai Islamic Bank, Mitsubishi UFJ Securities International plc, Standard Chartered Bank and UBS Limited as arrangers on the Trust Certificate Issuance Programme, Allen & Overy also advised Mitsubishi UFJ Securities International plc, Standard Chartered Bank and UBS Limited as arrangers on the Government of Dubai's $4bn EMTN Programme. The programmes are listed on both the London Stock Exchange and the Dubai Financial Market. Allen & Overy also advised National Bank of Abu Dhabi as joint bookrunner and joint lead manager of the AED denominated tranche.

Capital markets partner Anzal Mohammed commented: "This is a significant transaction for both the Emirate of Dubai and the international Islamic capital markets. An order book of approximately $6.5bn underlines the continued investor confidence in sovereign and sovereign-related issuers from the region. This transaction follows on from the firm's role in advising the Emirate of Abu Dhabi and the Emirate of Ras Al Khaimah on their respective international capital markets issues earlier this year and demonstrates the strength of Allen & Overy's sovereign capital markets practice in the Middle East."

The Allen & Overy team advising the arrangers and dealers on the programmes was led by capital market partner Anzal Mohammed (Dubai), supported by capital markets partner Roger Wedderburn-Day (London), with assistance from Paul Phelps (senior associate) and Jane Hogan (associate). Morgan Krone (partner) and Torquil Gibbs (senior associate) advised Deutsche Trustee Company Limited as the Delegate on the Trust Certificate Issuance Programme.