The listing of a $500 million Sukuk by The Arab Energy Fund (TAEF), a prominent multilateral impact finance organization with a focus on the energy industry, was welcomed by Nasdaq Dubai. The deal adds to the depth of the exchange’s Sukuk market and underscores the long-standing relationship between The Arab Energy Fund and Nasdaq Dubai.
The Sukuk consists of $500 million Trust Certificates that are due in 2031 and were issued under TAEF’s Trust Certificate Issuance Program through APICORP Sukuk Limited. The senior unsecured issuance was priced at a spread of 70 basis points over SOFR and has a profit rate of 4.686 percent.
Pricing was able to tighten from initial estimates because the offering was two times oversubscribed and garnered orders surpassing $900 million. High-quality institutions like central banks, sovereigns, supranational institutions, and agencies (SSAs) were among the investor base, demonstrating the strength of TAEF’s credit profile and market positioning. The transaction saw robust and well-diversified demand across geographies and investor types.
The Arab Energy Fund’s solid credit profile is reflected in the Trust Certificates’ AA+ rating from Fitch and Aa2 rating from Moody’s. Along with senior members from both organizations and Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), Khalid Ali Al-Ruwaigh, CEO of The Arab Energy Fund, rang the market-opening bell at Nasdaq Dubai to commemorate the listing.
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