The documentation and financial closure of UAE property group Emaar’s five year US$65mn ijara sukuk transaction was recently completed, with all the participating financial institutions signing the sukuk subscription agreement.
Liquidity Management Centre, a Bahrain-based
company, arranged and structured the transaction. The issue was funded
through LMC Emaar Sukuk Company, special purpose company. While the
Emirates Bank Group (EBG) was the senior lead manager for the issue,
Dubai Islamic Bank, ABN Amro, Arab Bank, BNP Paribas and The Arab
Investment Company participated as co-lead managers.
The sukuk issue represents Emaar’s first
foray into the Islamic capital markets and is expected to provide
further momentum in the regional capital markets.
The successful closure of this transaction, along
with several others in the recent past, is indicative of the increased
demand for such products as well as the growing maturity and diversity
of the regional capital markets.
The sukuk and other conventional bond
documentation are evolving well and reflect global best practices in
terms of transparency and disclosure, claims EBG. Such documentation
templates are expected to help the future public offerings across the
region. Welcoming the co-operative spirit of he GCC-based institutional
investors in making the issue a big success, the lead managers said all
concerned should work towards the creation of a vibrant secondary
market for such sharia-compliant instruments to ensure the liquidity.