05 Jun, 2024Nasdaq Dubai Welcomes USD 750 Million Debut Sustainability Sukuk Listing by Emirates Islamic

• The milestone issuance by Emirates Islamic highlights the growing importance of ESG principles in Islamic financing, supporting the UAE's vision for sustainable investments.

• Nasdaq Dubai’s total value of bonds and Sukuk listings amounted to USD 129 billion, and the total value of ESG listings including this Emirates Islamic Sukuk reached USD 29 billion of which Sustainability issuances account for USD 9.5 billion

Nasdaq Dubai welcomed the maiden Sustainability Sukuk issuance of USD 750 million by Emirates Islamic, one of the leading Islamic financial institutions in the UAE.  

The 5-Year issuance, which raised USD 750 million as part of the USD 2.5 billion Certificate Issuance Programme, marks a significant milestone in the bank’s sustainability journey and Islamic finance industry. With this latest admission, the total value of Sukuk listings by Emirates Islamic on the exchange reached USD 2.02 billion through four listings. The issuances reiterate Nasdaq Dubai's growing portfolio of listed debt securities and its consistent focus on facilitating innovative financial instruments.

The issuance witnessed robust demand from investors across different regions, with 44% of orders coming from outside of MENA region. The strong order book, which exceeded USD 2.10 billion i.e., an oversubscription of 2.8 times, allowed the bank to tighten the expected profit rate to 5.431% per annum, at a spread of 100 basis points over 5-Year US Treasuries. This Sustainability Sukuk was issued in line with Emirates NBD Group’s Sustainable Finance Framework and in compliance with Shariah rules and principles as determined by Emirates Islamic’s Internal Shariah Supervision Committee.

To commemorate the successful listing, Hesham Abdulla Al Qassim, Chairman, Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD rang the bell at the market-opening ceremony at Nasdaq Dubai, along with Hamed Ali, CEO of Nasdaq Dubai and DFM.

Hesham Abdulla Al Qassim, Chairman, Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD, said: “The listing of our first Sustainability Sukuk on Nasdaq Dubai represents our dedication to be the pioneering Shariah-compliant bank for customers, people, and communities, as well as our continuing commitment to fostering sustainability. We are proud to partner with Nasdaq Dubai to bringing to market a wide range of financial products to our customers, helping to foster a future built on sustainable growth in accordance with Islamic values. Emirates Islamic is committed to reducing its environmental impact, in line with the UAE Net Zero by 2050.”

Hamed Ali, CEO of Nasdaq Dubai and DFM, added: “Nasdaq Dubai welcomes Emirates Islamic’s debut Sustainability Sukuk, marking another milestone in our strong partnership. Such innovative listings not only enhance our role as the leading global hub for Islamic finance but also reinforces our commitment to driving sustainable investments and fostering a robust and diverse financial ecosystem.”

As a leading global centre for Sukuk listings, Dubai boasts an outstanding value of USD 93 billion in Sukuk issuances. Following Emirates Islamic’s latest addition, 44% of these listings by value are from UAE issuers, while 56% are from overseas issuers.

The exchange continues to solidify its status as the premier platform regionally and globally for both fixed income and ESG-related listings. It holds an outstanding total value of USD 129 billion in listed fixed income and USD 29 billion in ESG listings, of which sustainability issuances account for USD 9.5 billion, including the recent listing of Emirates Islamic.