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Dubai: Nakheel on Tuesday listed its Dh3.6 billion two-year dirham denominated sukuk on the Dubai International Financial Exchange (DIFX).
Dubai Islamic Bank, JPMorgan and NBD Investment bank were the lead managers and joint book runners for the transaction. Dubai World is guaranteeing the payment obligations under the sukuk.
The deal came after an extensive roadshow, which covered the UAE, Bahrain, Saudi Arabia, Qatar and the UK. The company received more than 30 orders in excess of Dh4.2 billion. The sukuk was priced 225 basis points above the six-month Emirates Interbank Offered Rate (EIBOR).
"Nakheel achieved land and property sales of approximately Dh23 billion in the first four months of this year compared with Dh20 billion in all of 2007 which has undoubtedly boosted investor confidence and demand for this Sukuk offering. Whatever may be happening in credit markets elsewhere, investors here are really seeing how robust the Dubai real-estate market is," said Kar Tung Quek, Nakheel's chief financial officer.
Middle East investors took the largest share of the offering (88 per cent), with the remaining going to international accounts. By account type, banks comprised 81 per cent of the order book, followed by fund and asset managers (15 per cent ) and private banks (four per cent).
Dubai: Real estate developer Nakheel, a part of Dubai World, on Tuesday listed its Dh3.6 billion two-year dirham denominated sukuk (Islamic bond) on the Dubai International Finance Exchange (DIFX).
Dubai Islamic Bank, JP Morgan and NBD Investment bank were the lead managers and joint book runners for the transaction.
Dubai World is guaranteeing the payment obligations under the sukuk.
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