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The Kingdom of Saudi Arabia, through KSA Sukuk Limited, has listed the world's largest ever sukuk issuance through two listings on the Main Securities Market of the Irish Stock Exchange (ISE) raising US$9 billion. The listings by the Kingdom of Saudi Arabia follow its inaugural US$17.5 billion issues which listed on the ISE in October 2016.
The five and ten year sukuk were issued in dual tranches under a hybrid sukuk issuance programme:
- Series 1 – US$4.5 billion 2.894% Trust Certificate due 2022
- Series 2 – US$4.5 billion 3.628% Trust Certificate due 2027.
ISE - the exchange of choice for the world's largest ever sukuk listings
Gerard Scully, Director of International Primary Markets, at the Irish Stock Exchange said; “we are delighted to be the exchange of choice for the world's largest ever sukuk listings – this confirms the Irish Stock Exchange’s popularity with sovereign and corporate issuers from the Middle East.”
ISE is popular with sovereign and corporate bond issuers from the Middle East
Other gulf sovereign bond listings choosing an ISE listing include Kuwait, Jordan, Oman and Bahrain. Corporate issuers from the Middle East on the ISE’s debt markets include Saudi Electricity Company, Emirates, Kuwait Energy, Ruwais Power Company and Emirates Telecommunications Corp.
Over 2,000 new bond listings on the ISE during Q1 2017
The ISE is one of the world’s leading exchanges for listing bonds. Quarterly statistics released by the ISE show that there were over 2,000 new debt listings on the ISE during Q1 2017 and that ISE markets list over 29,000 bonds from 85 countries around the globe.
- Details of the KSA Sukuk US$9bn dual-tranche issuances
- KSA Sukuk Limited – Trust Certificate Issuance Programme
Background
A sukuk is the Islamic equivalent of a bond. However, unlike a Western bond, which confers ownership of a debt only, Sukuk grants the investor a share of an asset, along with the commensurate cash flows and risk. As such, sukuk securities are in compliance with Islamic laws. They are also sometimes referred to as “sharia-compliant” bonds.
