Browse
related articles
Dr. Mohammed Khalfan bin Khirbash, UAE Minister of State for Finance and Industry and Chairman of Dubai Islamic Bank (DIB), said: "DIB will break its own previously held record of lead managing the world's largest Sukuk. It is a clear reflection of the lead position DIB currently enjoys amongst the world's financial institutions."
"The majority of the orders and expressions of interest received so far are from international institutional investors in addition to local and regional institutions and high net worth investors. A number of private banks are placing their orders with DIB and BC and are subsequently selling the Sukuk to their own private customers," he said.
Dr. Khirbash added:
"The PCFC Sukuk is the largest and also the first-ever convertible Sukuk issue. It is convertible to 30% equity shares of the PCFC entities when they go for the Initial Public Offering (IPO) within the next three years. "
"The unique structure of the Sukuk, with its convertible element, along with the attractive potential yield ranging from 7.25% to 8.25% per annum have made this a highly sought after instrument. If the IPO does not happen, then the yield of the Sukuk will become over 10% per annum," he said.
"The impressive response that we have received to the Sukuk issue lead managed by DIB is a testimony to the high level of credibility established by the bank among local, regional, and international investors," Dr. Khirbash noted.
He added: "The convertible Sukuk is reflective of the innovative and professional approach taken by PCFC to meet its financing needs. The proceeds from the Sukuk are to be used for general corporate purposes, including expansion requirements, and it is being issued at a time when PCFC has made a bid for P&O."
"The $ 2.8 billion Sukuk is the second time in the history of Islamic Banking that DIB has lead managed the largest ever Sukuk issue. The previous largest Sukuk was Dubai Civil Aviation's US$1 billion issue, which was also structured and lead managed by DIB".
Dr. Kharbash concluded: "To date, DIB has lead arranged and participated in a number of leading Sukuks. Additionally, there are many Sukuk mandates being worked upon. All of these issues lead arranged by DIB from local, regional and international markets will enhance the financial leadership of Dubai and the UAE. It will have a positive impact on the development of the UAE capital markets."
Posted by Anne-Birte Stensgaard, Senior News Editor
