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Mon 10 Dec 2018 06:42 PM

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ADX and General Holding Corporation list first tranche of SENAAT sukuk

$300m listing is the first dual operation by Abu Dhabi Securities Exchange and London Stock Exchange

ADX and General Holding Corporation list first tranche of SENAAT sukuk

Abu Dhabi Securities Exchange (ADX) and UAE-based General Holding Corporation (SENAAT) have officially listed the first tranche of SENAAT sukuk, valued at $300 million (1.1 billion AED), in a dual listing between Abu Dhabi Securities Exchange (ADX) and London Stock Exchange.

The sukuk listing was quickly met by high demand from more than 180 local and global investors, exceeding the coverage ratio by almost 10 folds. It was raised at a profit rate of 4.76% with a 7-year tenure, backed by an Obligor Rating of A3 (stable) by Moody’s and A (stable) by Fitch last week.

For the UAE government, this new listing reflects the stability and security of the ADX’s investment environment and the efficiency of its procedures.

Khaleefa Al Mansouri, acting chief executive of ADX, said: “The market is capable of listing fixed-income securities and adopts an advanced system of settlement and clearing. ADX also has an outstanding infrastructure for listing diversified securities, giving investors the opportunity to invest their savings in a legal environment that adheres to global best practices in disclosure, transparency and provides a stable economic and regulatory environment.”

As for General Holding Corporation (SENAAT), this issuance is “the first time the company has entered the public markets to issue sukuk that can be traded in one of the world's leading financial markets. This is a confirmation of the strong performance and progress achieved by the company,” said its CEO, Eng. Jamal Salem Al Dhaheri.

“As one of the largest holding companies in the field of industrial investment in the UAE, we have a strong financial position that enhances our self-sufficiency and strengthens the confidence of lenders in supporting our development plans,” he added.

This is not the first such kind of listings on ADX, which saw in May the issuance of sovereign bonds issued by the Ministry of Finance and The Maldives Ministry of Finance and Treasury on behalf of the Government of Maldives for the Abu Dhabi Fund for Development (ADFD); and in October the listing of Aldar Investment Properties LLC sukuk jointly with the Irish Stock Exchange.