Sunday 09, April 2017 by Jessica Combes

Ezdan places $500 million Sukuk

Ezdan Holding Group Q.P.S.C. priced its second Sukuk transaction, under its $2 billion Sukuk EMTN Programme established in 2016.

 

The successful $500 million five-year Sukuk was priced on 29 March 2017, and  attracted an order-book of more than $1.2 billion, with 129 investors from around 30 countries participating.

 

"We are very pleased at the excellent market reception to Ezdan's second Sukuk issue. The strong demand for the Company’s second Sukuk is a clear sign of support for the economic fundamentals of Qatar as well as a testament to the continuous sponsorship to Ezdan’s credit from regional and international investors. Investors’ strong interest resulted in the order book being 2.4 times oversubscribed, reaching $1.2 billion, more than the over subscription amount in Ezdan’s inaugural transaction.. We consider debt capital markets as a key source of funding that will enable us to maintain a diversified and balanced suite of financing instruments for Ezdan’s continued growth,” said Ali Mohammed Al Obaidli, Group CEO of Ezdan Holding.

 

Investors from the Middle East took 58 per cent of the issuance, with European investors subscribing for 28 per cent and Asian and other investors taking 14 per cent. In terms of distribution by investor type, banks took 46 per cent of the issue amount, followed by fund managers with 32 per cent, private banks with 12 per cent and other institutional investors with 10 per cent.

 

“It is again a great honour for HSBC to be part of this successful transaction for the second consecutive year. The strong investor participation both regionally and internationally is a reflection of Ezdan Holding’s ever growing franchise and its ability to capitalise on its credit strengths to continue building international investor recognition,” said Ahmed Abdelaal, Regional Head of Corporate Clients Coverage MENAT, HSBC

 

The transaction is the second milestone in Ezdan’s $2 billion Sukuk programme established on 3 May 2016. The issuance was concluded after an extensive investor roadshow in Hong Kong, Singapore, the UAE and London.

 

I would like to congratulate the Ezdan team on a very successful close of the 2nd issuance of USD 500M under their USD 2B programme. The 2.4X oversubscribed transaction with demand from Asia, Middle East and Europe has demonstrated that Ezdan is fast becoming an established issuer and is also recognised by investors as a strong Qatar based enterprise.  We at Mashreq are proud to be associated as Global Coordinator for this transaction with Ezdan and look forward to contributing to their continued successes in the future,” said Jan-Willem Sudmann, Group Head of Head of International Banking Group at Mashreqbank psc.

 

Highlights of the transaction:

 

  • The Sukuk was successfully priced at a lower spread than the previous instrument during volatile market conditions
  • The high oversubscription rate reflects Ezdan’s strong credit and investors’ confidence who consider Ezdan as a repeat and established issuer
  • Ezdan launched the Sukuk on the back of an international roadshow, visiting key investors in Asia, the Middle East and Europe.
  • HSBC and Mashreq Bank were the Joint Global Coordinators for the issue and were joined by Dubai Islamic Bank, Emirates NBD Capital, NATIXIS, QInvest and Standard Chartered Bank as Joint Lead Managers.

  

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