UAE’s second retail treasury sukuk begins trading on Nasdaq Dubai

By Zawya

By Staff Writer

The UAE’s Ministry of Finance has listed its second five-year Sovereign Retail T-Sukuk on Nasdaq Dubai for the commencement of secondary-market trading.

The sukuk carries a fixed coupon of 5.06% and matures on 30 September 2031.

The offering generated subscription orders of 285 million UAE dirhams ($80.3 million), approximately 5.7 times the target issuance size of AED 50 million, a release stated. Retail investors subscribing AED 10,000 or less made up 75% of all subscription applications, while UAE nationals represented 69% of the overall demand.

The Ministry of Finance said the continued rollout of the Sovereign Retail T-Sukuk Programme aligns with the its strategy to develop domestic AED denominated capital markets and broaden the investor base through investment instruments.

The listed sukuk offers a five-year tenor, semi-annual profit distributions and a minimum investment threshold of AED 1,000.

Emirates NBD served as the lead receiving bank, with Emirates Islamic, Abu Dhabi Islamic Bank, Ajman Bank, Mashreq, Abu Dhabi Commercial Bank and First Abu Dhabi Bank acting as participating receiving banks.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com

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