NASDAQ lists $500 million Sukuk from flydubai

19/01/2015 19:38 AST

Ghaith Al Ghaith, Chief Executive Officer of flydubai, rang the market-opening bell celebrating their listing of a $500 million (AED 1.84 billion) inaugural Sukuk on NASDAQ.

The Sukuk saw a geographic distribution of 64 per cent to Middle East accounts, 25 per cent to European accounts, seven per cent to Asia, and four per cent to US offshore.

His Excellency Essa Kazim, Secretary General of DIEDC and Chairman of DFM, said: “The issuance and listing of flydubai’s Sukuk demonstrates the important role being played by the Islamic capital markets in supporting Dubai’s growth as a global aviation centre. The expansion of the Sukuk sector is a key element in the initiative of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, to position Dubai as the global capital of the Islamic Economy, under the direction of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai.”

Ghaith Al Ghaith, Chief Executive Officer of flydubai, said: “In 2009, flydubai set out to build a world-class, affordable airline that provided passengers a higher level of service and facilitated increased travel to and from the UAE for business, tourism and trade. Given that five years on we now operate 1,400 flights per week to 89 destinations our financing needs have evolved and this Sukuk enables us to further build upon our achievements. NASDAQ Dubai, with its first class regulatory framework, has provided us with greater exposure to global fixed income investors and significantly contributed to the success of our issuance.” Abdul Wahed Al Fahim, Chairman of NASDAQ Dubai, said: “We look forward to welcoming many more regional and international Sukuk issuers that are active in a variety of sectors, as our market continues to expand. We will continue to enhance the infrastructure that we provide them in services including trading, custody and transfer.”

Hamed Ali, Chief Executive of NASDAQ Dubai, said: “The exchange will provide flydubai and the investors in its Sukuk with the responsive environment they expect on a first-class listing platform. NASDAQ Dubai is in contact with a substantial number of potential issuers inside and outside the region who wish to list Sukuk in 2015 and beyond to meet their capital-raising needs.”

CPI Financial