Dubai, UAE — Nasdaq Dubai has listed a $500 million sukuk issued by The Arab Energy Fund (TAEF), adding to the exchange’s Islamic debt market as demand for high-grade regional debt remains strong.
The senior unsecured trust certificates, issued through APICORP Sukuk Limited under TAEF’s Trust Certificate Issuance Programme, mature in 2031 and carry a profit rate of 4.686%. The sukuk was priced at a spread of 70 basis points over the Secured Overnight Financing Rate (SOFR).
The issuance attracted more than $900 million in orders, making it around two times oversubscribed and allowing pricing to tighten from initial guidance, TAEF said. Investors included central banks, sovereign wealth funds, supranational institutions and agencies.
The trust certificates are rated Aa2 by Moody’s and AA+ by Fitch.
“This transaction shows both the strength of our credit profile and our ability to work through difficult market conditions,” TAEF Chief Financial Officer Vicky Bhatia said, adding that the sukuk was priced at SOFR plus 70 basis points without a new issue premium despite volatile markets.
The listing marks TAEF’s fourth on Nasdaq Dubai and follows a separate $500 million 10-year sukuk issued earlier this year as part of the fund’s diversified financing strategy to support energy projects across the Arab world.
Nasdaq Dubai said the total value of sukuk listed on the exchange now exceeds $98.6 billion, while total debt listings have surpassed $141 billion.
