Steffen Schubert, Chief Executive Officer of the DIFX commented: “This is a very significant development for the DIFX as it demonstrates the growth of confidence in the exchange. This is the first primary sukuk listing on the DIFX and we expect to see more debt and equity securities of similar importance being listed in the coming months.”
Nicholas Hegarty, Chief Executive Officer and Managing Director for Barclays Capital in the Middle East and North Africa, commented: "The decision to list the PCFC Sukuk on the DIFX is a logical step given the domicile of the issuer, the Islamic structure and the predominant investor base for the issue. In support of the issue and given Barclays Capital's commitment to the DIFC and the region, we have applied for and received membership of the DIFX."
Commenting on the listing, Sultan Ahmed Bin Sulayem, Executive Chairman of PCFC, said: “We are an international company and the DIFX is the first truly international exchange in the region. It gives us better international exposure, hence it is our natural choice. The DIFX has some of the best policies, it has credibility and it is independent. This is the best platform for our first listing. We have other instruments that we would like to list on the DIFX in the coming years.”
Lead-managed by Dubai Islamic Bank and Barclays Capital, the landmark Sukuk is the first convertible instrument in the Islamic finance market.
Saad Abdul Razak, Chief Executive Officer of Dubai Islamic Bank, stated: “Listing the PCFC Sukuk on DIFX reflects the confidence which investors and everyone else involved in the deal have placed in DIFX. DIFX is no doubt going to play a very important role in the listing of Islamic securities going forward. We intend to build on our partnership with DIFX by regularly bringing new issues for listing on the exchange.”
The issue is part of a large financing package being arranged for PCFC's general corporate activities, ongoing business development needs and expansion plans. Its unique convertible structure allows partial redemption of up to 30% in the form of equity shares of the subsidiaries of PCFC as and when they go for a Public Equity Offering within the next two years. If no Public Equity Offering takes place prior to the final redemption date, investors will be compensated with a higher yield.
The Sukuk offer a return of 7.125 per cent per annum if a Public Equity Offering happens during the next two years and a higher return of 10.125 per cent per annum on any amount of the Sukuk outstanding at maturity which have not been redeemed from the said equity offerings. The Sukuk will trade over the counter rather than on the exchange.
Nasser Al Shaali, Chief Operating Officer of the DIFX, commented: “This listing is a great achievement for the DIFX and certainly one that confirms the exchange’s ability to work effectively with global and regional advisory banks and issuers to secure a primary listing of this calibre. This is a defining moment for the DIFX and we are very pleased to be associated with this blue-chip listing at this stage in our development.”
