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Sukuk issuances grow on Nasdaq Dubai with USD 500m listing by Emaar

EmaarBurjKhalifa
This is the fourth sukuk to be listed on Nasdaq Dubai by Emaar Properties and subsidiary Emaar Malls.

Emirati real estate multinational company Emaar Properties has listed its USD 500 million sukuk, or sharia-compliant bonds, on Nasdaq Dubai on 6 July 2021, according to a recent announcement.

Chairman of Emaar Properties Jamal Bin Theniyah rang the opening bell at Nasdaq Dubai to celebrate the listing of the 10-year sukuk issuance. The bonds were issued at 3.7% yield, and have attracted investment applications of over USD 3.3 billion.

Earlier this year, Emaar reported a jump of 250% in sales in the first five months of the year, as compared to the same period in 2020. Total sales accumulated to USD 2.8 billion for the period, as compared to sales of over USD 800 million last year.

Further, ratings agency S&P Global changed its outlook for Emaar from negative to stable, following a pickup in residential real estate prices in Dubai. The company’s EBITDA, an indicator of operational profitability, is likely to exceed USD 2 billion, earning the company a long-term issuer credit rating of BB+, the agency said.

NASDAQ DUBAI ATTRACTIVE FOR SUKUK LISTINGS

The issuance is part of Emaar’s USD 2 billion Trust Certificates Issuance Programme solely listed on Nasdaq Dubai.

This is the third 10-year sukuk to be listed on Nasdaq Dubai by Emaar Properties. The company had earlier listed another USD 500 million sukuk exclusively on the exchange at 3.875%, as well as a USD 750 million sukuk in 2016 at 3.635%.

Further, Emaar Properties’s subsidiary Emaar Malls also listed a USD 750 million sukuk listed on Nasdaq Dubai in 2014 at 4.564%.

The listing brings the total value of listed sukuks in Dubai’s capital markets to USD 78.04 billion. There are 115 sukuks currently listed on Nasdaq Dubai.

“Issuances and listings so far this year strongly reinforce Nasdaq Dubai’s status as the preferred listing venue for Sukuk and Bonds as well as its active role in realising Dubai’s strategy as one of the leading financial hubs globally,” Rashid Al Shamsi, Board Member of Nasdaq Dubai, said.

The market for sukuk issuances is looking optimistic, with listings expected to increase globally to USD 155 billion this year. Low interest rates, high liquidity, and economic rebounds and high vaccination drives in Islamic finance countries, are contributing to the popularity of the bonds. Sukuks of over USD 23 billion were issued as of April this year at a record rate.

Photo credit: www.arabianbusiness.com

 

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TAGS: emaar dubai
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