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$200mn Kuwaiti sukuk lists on DIFX

International Investment Group (IIG), a Sharia-compliant investment house licensed by the Central Bank of Kuwait, on Thursday listed a $200 million exchangeable sukuk on the Dubai International Financial Exchange (DIFX).

The listing is the first international sukuk offering that is exchangeable into shares of a Kuwaiti company, and is also the second sukuk from a Kuwaiti company to list on the DIFX.
The listing brings the total value of sukuk on the exchange to $9.18 billion.

“We chose the DIFX for our sukuk listing as it is recognised as the region's leading international exchange across a broad range of securities, as well as being at the global forefront for sukuk listings,” said Sami Al-Bader, chairman and managing director of IIG.

The fourth exchangeable sukuk to list on the DIFX, the IIG sukuk may be redeemable in the form of IIG shares, which are listed on the Kuwait stock exchange, or cash, IIG said.

“The exchangeability of the sukuk gives us flexibility in our financial strategy as we continue to expand the scope of IIG's business activities and generate profitability for our shareholders,' Al-Bader said.

Per Larsson, chief executive of the DIFX, added: “Sukuk play an important role in our plans to expand the Islamic finance sector of our exchange.”

IIG's sukuk is based on an Islamic Mudarabah structure and has been issued by IIG Funding Limited, a special purpose vehicle established in Jersey, UK.

Barclays Capital was the sole lead manager and sole bookrunner of the issue.

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