IDB's $1.25 billion sukuk begins trading on Nasdaq Dubai

dubai - The listing supports the economic development and social advancement goals of IDB

Dr Zamir Iqbal, vice-president of finance and chief financial officer of the Islamic Development Bank (IDB), rang the market-opening bell on Tuesday to mark the listing of a $1.25 billion sukuk on Nasdaq Dubai, the region's international financial exchange.

The listing supports the economic development and social advancement goals of IDB, an AAA-rated multilateral institution, whose activities include providing financing for development projects in line with Shariah principles to its 57 member countries.

The geographical distribution of investors show strong demand for IDB sukuk, where 53 per cent of the five-year sukuk issuance was acquired by investors in the EMEA region, while 47 per cent went to investors based in Asia, with an annual return of 2.261 per cent.

The IDB is one of the largest sukuk issuers on Nasdaq Dubai, with eight listings valued at $10.3 billion.

The bell-ringing ceremony was attended by Hamed Ali, the exchange's chief executive, as well as Azahari bin Abd Kudus, capital markets manager of IDB.

Iqbal said: "As the IDB increases its support for member countries in sectors ranging from infrastructure and agriculture to schools and hospitals, it is critical for us to raise capital in a cost-effective, efficient and timely manner. We appreciate the support of the UAE in helping us promoting development in member countries. Our listing on Nasdaq Dubai is a testimony of investors' confidence through its robust infrastructure and regulatory environment and global network of market participants."

Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, said: "IDB's latest sukuk listing underlines its close relationship with Dubai and is another significant step in the growth of the emirate as the global capital of the Islamic economy. We are delighted to make Dubai's Islamic capital markets infrastructure available to IDB in order to facilitate its beneficial economic and social activities."

- business@khaleejtimes.com