Mr. Adel Abdulwahab AlMajed, Vice Chairman and CEO of Kuwait-based Boubyan Bank, rang the market-opening bell today to celebrate the listing on Nasdaq Dubai of the bank’s first ever Sukuk issuance, valued at 250 million US dollars. The issuance, which was more than five times oversubscribed, marks the first Sukuk out of Kuwait since 2007, first Kuwaiti bank Sukuk and the first Basel III compliant Tier I Sukuk worldwide. It is also the first Tier I Sukuk out of the region in 2016.
The listing by a prominent GCC financial institution underlines Dubai’s status as the global leader for Sukuk listings, with a total nominal value of 44.06 billion US dollars from issuers in the Middle East and beyond.
The bell-ringing ceremony took place in the presence of His Excellency Essa Kazim, Governor of Dubai International Financial Centre (DIFC), Secretary General of Dubai Islamic Economy Development Centre (DIEDC), and Chairman of Dubai Financial Market (DFM); and Hamed Ali, Chief Executive of Nasdaq Dubai.
HE Essa Kazim, Governor of DIFC, Secretary General of DIEDC and Chairman of DFM, said: “This listing by a major Kuwait entity further advances cooperation between GCC states in the capital markets sector, as well as the growth of Dubai as the global Capital of the Islamic Economy under the initiative launched by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai. Dubai looks forward to welcoming further listings from GCC and other issuers that will facilitate their success and enhance mutually beneficial economic development.”
Mr. AlMajed of Boubyan Bank said: “Boubyan continues to be one of the fastest growing banks in Kuwait and the listing of our Sukuk on the region’s international exchange enhances our global profile and strengthens our links to a wide range of Islamic and other investors around the world. Nasdaq Dubai provides our inaugural Islamic bond with high visibility in a respected listing environment regulated to international standards.”
Boubyan Bank’s 250 million US dollar Sukuk listed on Nasdaq Dubai on May 17. It was the 8th Sukuk listing on the exchange so far in 2016.
With Sukuk issuance taking a growing share of the debt markets in the GCC and many other countries, Dubai’s role as a centre of excellence for listing Islamic instruments is poised for further expansion.
Total new Sukuk issuance with a maturity of more than 18 months in the GCC, Malaysia, Indonesia, Turkey, Singapore and Pakistan reached 11.1 billion US dollars in the first quarter of 2016, according to Fitch Ratings. This amounted to 39% of total bond and Sukuk issuance in those countries in the quarter, which was the highest proportion for eight years.
Mr. Saleh Al Ateeqi, Chief Executive Officer of Boubyan Capital Investment Company, said: “Boubyan Capital ensured that the first Sukuk issuance to be managed by the company was the Boubyan Bank issuance, because this is a very unique event, being the first issuance of Sukuk in the world for the enhancement of Tier 1 Capital in compliance with the requirements of Basel III. Despite the circumstances surrounding the international economy, the company managed, thanks to God, with its young national cadres and expertise, to market the Sukuk within a record time and succeeded in managing the issuance.”
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “The Sukuk sector globally including Dubai is reaping the benefits of many years of development and infrastructure building, which has created the right technology and regulatory framework as well as the commercial knowhow to spur further growth. Nasdaq Dubai is working to further enhance its swift and responsive Sukuk listing process, as well as its extensive post-listing services.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “This listing by Boubyan Bank represents a significant strengthening of ties with Kuwait’s financial markets and we look forward to welcoming further Kuwaiti listings on our platform, so that they can benefit from our close regional and global links with market participants and the high visibility that we provide. We will introduce further innovation and product development across the capital markets to meet the evolving needs of Kuwaiti and other issuers and investors.”
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