DIFC Investments prices $700m sukuk at 4.325 per cent
Dubai: The DIFC Investments LLC (DIFCI), late on Tuesday successfully priced its $700-million (Dh2.56 billion) 10-year sukuk issued at par with a 4.325 per cent profit rate.
The transaction, which represents DIFCI’s return to the debt capital markets since its issuance in 2007, was priced at 185 bps spread over US dollar mid-swaps. The DIFCI’s transaction is the first dollar-denominated benchmark issuance by a regional corporate since last July.
Ahead of the sukuk issuance, DIFCI was assigned a BBB-issuer credit rating by S&P. Shortly after receiving its credit rating, DIFCI undertook an extensive marketing strategy covering Abu Dhabi, Dubai, Hong Kong, Singapore and London.
The order book opened on Monday morning and quickly gained momentum and was in excess of $1.9 billion by London close of business. The strong investor interest was sustained throughout Asia and the order book grew to approximately $3 billion, representing approximately 4.3 times oversubscription.
We are extremely pleased with the success of this transaction. The sukuk represents a milestone in DIFC’s credit story and acts as a testament to the improved credit fundamentals of the company,” Essa Abdulfattah Kazim, Governor of DIFC, said.
Dubai Islamic Bank, Emirates NBD Capital, Noor Bank. and Standard Chartered Bank acted as joint lead managers on the issuance. The sukuk will be listed on Nasdaq Dubai.