DUBAI, 8 June 2007 — DIFC Investments LLC, the investment arm of the Dubai International Financial Center (DIFC), yesterday announced the issue of a $1.25 billion Sukuk, the largest rated and the largest straight Sukuk to come out of the region.
The 5-year Sukuk, the first one to be entirely documented under DIFC Law, attracted a high level of international participation, with 67 percent of Sukuk’s subscription originating outside the region.
The success of this first issue from DIFC Investments illustrates investor confidence in the jurisdiction of the DIFC, the dramatic growth in Islamic finance globally and opportunities arising from Dubai’s economic development. Of the $1.25 billion, 20 percent comes from Asian investors, 47 percent from European investors and 33 percent from investors in the Middle East.
Of the total, 54 went to banks, 35 percent to fund managers, 7 percent to central banks and government agencies and 4 percent to insurance and pension funds.
DIFC Governor Dr Omar Bin Sulaiman said “this landmark issue exemplifies the DIFC’s mission to be a catalyst for economic growth, development and diversification.
The interest shown in this Sukuk illustrates Dubai’s stature as an internationally recognized financial centre and a global leader in Islamic finance.”
He added “this pricing reflects both the strength of the DIFC and the Sukuk’s credit rating.”
The Sukuk received ratings of “A1” from Moody’s and “A+” from Standard & Poor’s.
Roadshow stops included: Kuala Lumpur, Singapore, London, Geneva, Zurich, Dubai, Abu Dhabi, Bahrain and Riyadh. A total of 80 investors attended either one-on-one or group meetings.
Deutsche Bank AG and Goldman Sachs were Joint Lead Managers and Joint Bookrunners.
The co-managers were CIMB Berhad, Dubai Islamic Bank PJSC, Emirates Bank International PJSC, Emirates Islamic Bank PJSC, Mashreqbank psc and National Bank of Dubai PJSC. Rothschild acted as financial adviser to DIFC Investments on the Sukuk issue, while Linklaters LLP acted as legal adviser to the issuer and Allen & Overy LLP acted as legal adviser to the Lead Managers.
