EZDAN PLACES US$ 500 MILLION SUKUK

  • Investor demand in total reaching to c. US$ 1.2 billion, about 2.4 times of the offered amount.
  • Sukuk has a maturity of 5 years and will pay a fixed coupon of 4.875% per annum.

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.”