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Wed 24 Jul 2019 01:47 PM

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Sheikh Mansour-owned investment firm launches $600m sukuk

More than 135 investors from over 20 countries participate in Emirates Strategic Investments Company's sukuk

Sheikh Mansour-owned investment firm launches $600m sukuk

Emirates Strategic Investments Company (ESIC), which is owned by Sheikh Mansour Bin Zayed Al Nahyan, has launched a five-year $600 million sukuk.

The issuance emanates from ESIC’s $1 billion sukuk programme, which is listed on the London Stock Exchange, and carries a profit rate of 3.939 percent - 35bps tighter than initial price thoughts.

Investor demand for the Sukuk was strong with a $3.7bn orderbook, representing an oversubscription rate of 6.2 times.

More than 135 investors from over 20 countries participated – 61 percent of the sukuk was allocated to international investors (33 percent to Asia, 24 percent to Europe and 4 percent to the US), and 39 percent was allocated to GCC investors.

By type, 62 percent were fund managers, 25 percent were banks, 9 percent were private banks and 4 percent were central banks and pension funds.

The transaction followed a comprehensive marketing strategy aimed at introducing ESIC’s credit to the international fixed income community - a senior management delegation met with investors in Singapore, Hong Kong, Abu Dhabi, Dubai and London.

Khalid Deemas Al Suwaidi, chief executive officer of ESIC, said: “Under the visionary leadership of His Highness Sheikh Mansour Bin Zayed Al Nahyan, ESIC was established to support the Abu Dhabi Economic Vision 2030 and other strategic initiatives of the UAE. The Sukuk promotes the development of capital markets and Islamic finance in the UAE, as well as setting an international benchmark for other UAE private company to follow. We are very pleased with the outcome of the Sukuk and the international investor demand that we received, which reflects the UAE’s strong standing in the international community”.

ESIC, a multi-sector investment company with a diversified portfolio in the UAE, is the first corporate from Abu Dhabi to access the market in 2019 and its success is expected to pave the way for other privately held entities from the country to access the international capital markets.

The deal was led by First Abu Dhabi Bank and Standard Chartered Bank as Joint Global Coordinators. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, National Bank of Bahrain, Standard Chartered Bank and Warba Bank acted as Joint Lead Managers. Allen & Overy acted as legal counsel for the banks, and Simmons & Simmons acted for ESIC.

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