IIFM endorses Tabreed Finance Corporation USD 100 million trust certificates

This offering reflects the growing demand and appetite for Sukuk. It is the first global corporate Sukuk to be listed on the Luxembourg Stock Exchange.

"As the first global corporate Sukuk issue, the offer is really a ground breaking and a benchmark for future corporate Sukuk offerings. It will open the door to the corporate sector to tap the fast growing Sukuk market. Regular corporate Sukuk issuances will definitely add depth to the market and help in creating an active Islamic secondary market," said Mr. Abdul Rais Abdul Majid Chief Executive Officer -IIFM.

"In fact, the International Islamic Financial Market was in touch with the process of issuing this landmark Sukuk since its early stages especially in term of facilitating Shariah documentation". Mr Abdul Rais added

The five-year global corporate Sukuk provided a fixed coupon of 5.50 per cent. It is a combination of Ijarah Istisna and Ijarah Mawsufah fi al dhimmah or forward leasing contracts.

The National Investor is the sole adviser and arranger. It also acted as Joint Lead Manager with Credit Swiss First Boston (CSFB). Emirates Bank joined as Co-Lead Manager. Shamil Bank of Bahrain, Kuwait Finance House and National Bank of Sharjah acted as Co-Managers.

It is worth noting that the IIFM's Shari'ah Supervisory Committee is composed of internationally renowned scholars representing different regions. This diversification of scholars reinforces the credibility of the endorsement and allows the Sukuk to get access to different markets.