DIFX Cements Place As World Leader For Islamic Listings

by Lorys Charalambous, Tax-News.com, Cyprus

28 March 2007

Dubai Islamic Bank has listed a $750 million Sukuk on the Dubai International Financial Exchange (DIFX) after selling the Islamic securities to investors in the Europe, Asia and Middle East, cementing the DIFX's position as the leading exchange for the listing of these Islamic instruments.

The Sukuk was the first ever issued by the bank, which specialises exclusively in Islamic financial services.

Saad Abdul Razak, group Chief Executive Officer of Dubai Islamic Bank announced that: “The DIFX is a perfect venue to list our first Sukuk. It is established as the largest exchange in the world for Sukuk and its international stature gives our listing high visibility in the marketplace, both in the region and globally.”

Per E. Larsson, Chief Executive of the DIFX, added: “This listing by a prominent Islamic financial institution reinforces the central role played by the DIFX in the growth of Sukuk as an attractive asset class. It raises the value of Sukuk on the DIFX to $8.38 billion, which is more than the value on any other exchange.”

Forty-five per cent of the Sukuk issue was placed with investors in the Middle East, 30% in Europe and the balance was placed in Asia.

The Sukuk was issued by DIB Sukuk Company Limited, a company incorporated in accordance with the laws of, and formed and registered in, the Cayman Islands. The Sukuk issue is rated A1 by Moody's and A by Standard and Poor's. The lead managers and bookrunners for the issue were Barclays Capital, Citigroup and Standard Chartered Bank.

Hamed Ali, Executive Officer of the DIFX, noted: “The DIFX intends to strengthen its focus on Sukuk. The total value of Sukuk issued globally in 2006 was $27.1 billion, more than twice as much as in 2005, as issuers turn increasingly to this Islamic asset class as an effective way to raise capital.”

Recommended