sustainability sukuk

UAE Islamic financial institution, Emirates Islamic, has listed its debut five-year sustainability sukuk issuance on Nasdaq. The issuance raised USD 750 million as part of the USD 2.5 billion Certificate Issuance Programme. This brings the total value of sukuk listings by Emirates Islamic on the exchange to USD 2.02 billion through four listings. 

It was shared that the issuance saw 44 per cent of orders coming from outside of the MENA region.

The order book exceeded USD 2.10 billion, an oversubscription of 2.8 times. This allowed the bank to tighten the expected profit rate to 5.431 per cent per annum, at a spread of 100 basis points over 5-year US Treasuries. 

Further, Emirates Islamic noted that the 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.

Hesham Abdulla Al Qassim, Chairman, Emirates Islamic and Vice Chairman and Managing Director of Emirates NBD, commented: “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.”