Dubai - MENA herald: Ezdan Holding Group Q.P.S.C. priced its 2nd Sukuk transaction, under its US$ 2bn Sukuk EMTN Programme established in 2016. The successful US$ 500 million 5 year Sukuk was priced on 29th March 2017, and attracted an order-book of more than US$ 1.2 billion, with 129 investors from around 30 countries participating.
Commenting on the deal, Mr. Ali Mohammed Al Obaidli, Group CEO of Ezdan Holding said, "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 c. US$ 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
Investors from the Middle East took 58% of the issuance, with European investors subscribing for 28% and Asian and other investors taking 14%. In terms of distribution by investor type, banks took 46% of the issue amount, followed by fund managers with 32%, private banks with 12% and other institutional investors with 10%.
Ahmed Abdelaal, Regional Head of Corporate Clients Coverage MENAT, HSBC, added:
“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 capitalize on its credit strengths to continue building international investor recognition.
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.
Mr Jan- Willem Sudmann, Group Head of Head of International Banking Group at Mashreqbank psc mentioned:
I would like to congratulate the Ezdan team on a very successful close of the 2nd issuance of USD 500M under their USD 2B program. 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 recognized 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.”
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
Terms of the issue
Sukuk Issuer: Ezdan Sukuk Company Limited
Sukuk Obligor: Ezdan Holding Group Q.P.S.C.
Obligor Rating: BBB- (S&P) and Ba1 (Moody’s)
Expected Issue Rating: BBB- (S&P) and Ba1 (Moody’s)
Sukuk Structure: Wakala (Management) principle
Format: Regulation S (Registered), Fixed Rate
Final Coupon: 4.875%
Final Spread: MS+295.2bps
Profit Rate: 5% (Yield)
Size: US$500m
Maturity: 5th April 2022
Settle: 5th April 2017 (T+5)
Denominations: US$ 200k x US$ 1k
Listing: Irish Stock Exchange
Law: English Law (Sukuk assets governed by Qatari Law)
