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sukuk

Warba Bank Lists $500m Sustainability Sukuk at Nasdaq Dubai

by Madaline Dunn August 12, 2024

written by Madaline Dunn

Kuwait’s Warba Bank has announced the listing of sustainability Sukuk worth $500 million on Nasdaq Dubai.

According to the bank, this is the first-ever issuance of sustainable Sukuk in Kuwait, with the five-year certificates designed to support eligible sustainable projects and initiatives.

With this listing, the total value of Warba Bank’s Sukuk listed on Nasdaq Dubai reaches USD 1.25 billion through three listings, it was shared.

The issuance received orders reaching USD 1.8 billion, 3.6 times the issuance size.

Shaheen H. Al Ghanem, CEO of Warba Bank, commented: “We are thrilled to announce the successful listing of our Sukuk on Nasdaq Dubai. This initiative represents a pivotal step in our strategy to integrate sustainable practices with our financial offerings.

Adding: “By listing on Nasdaq Dubai, we are not only underscoring our commitment to environmental and social responsibility but also enhancing our visibility among discerning global investors who prioritize sustainability. This issuance allows us to lead by example in the financial sector, driving the adoption of sustainable financing solutions that support long-term environmental, social and economic sustainability.”

Hamed Ali, CEO of Nasdaq Dubai and DFM, said: “We are pleased to welcome Warba Bank’s Sukuk to Nasdaq Dubai. This listing reflects our commitment to continuously support green and sustainable financing initiatives in the region and provide a robust listing platform for such financial instruments.”

August 12, 2024 0 comments

ESG Sukuk Issuance to Slowdown in 3Q24, Before Rise in 4Q24–1Q25

by Madaline Dunn August 2, 2024

written by Madaline Dunn

Global outstanding ESG sukuk increased in the first half of the year, rising to 41 per cent year-over-year and reaching USD43 billion at end-1H24, according to Fitch Ratings.

In the Islamic finance core markets (GCC countries, Malaysia, Indonesia, Turkiye and Pakistan), ESG sukuk issuance in 1H24 rose 13 per cent year-over-year to USD6.3 billion.

That said, ESG bond issuance declined by 34 per cent year-over-year to USD7.8 billion.

Outstanding ESG sukuk represent a sizeable share (12.9 per cent) of global outstanding sukuk (hard currencies), it shared.

Sukuk had a sizeable share of the hard-currency ESG debt mix in Indonesia (2Q24: 59 per cent), Malaysia (52 per cent) and Saudi Arabia (48 per cent), with the rest in bonds.

Slower ESG sukuk issuance is now expected in 3Q24 before the market regains momentum over 4Q24–1Q25, according to the credit rating agency.

“Almost all (99%) of Fitch-rated ESG sukuk are investment-grade, with issuers on Stable Outlooks,” said Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings.

Al Natoor added that the “promising medium-term potential” for ESG debt issuance is fuelled by governments’ “increasing commitment to sustainability” and issuers’ aims to meet ESG mandates and funding diversification plans.

Qatar Central Bank, for example, announced an ESG and sustainability strategy for the financial sector, which could support ESG sukuk and bond development, it said.

Meanwhile, Saudi Arabia, Malaysia, UAE, and Oman have previously launched ESG frameworks and initiatives.

ESG sukuk in GCC countries reached USD18.5 billion outstanding, or 43 per cent of global ESG sukuk.

Saudi Arabia accounts for the largest portion (42.7 per cent) of Fitch-rated ESG sukuk, with the UAE coming in second at 33.8 per cent.

In the UAE, ESG sukuk has been issued by Emirates Islamic Bank (USD0.75 billion sukuk, rated ‘A+’) and Aldar Investment Properties (USD0.5 billion), while in Saudi Arabia, Al Rajhi Banking and Investment Corporation issued USD1 billion sustainable sukuk.

“However, the ESG debt segment is at a nascent stage compared to developed markets,” Al Natoor noted.

August 2, 2024 0 comments

Finance Latest News

Franklin Templeton Adds New Hire to Global Sukuk and MENA Fixed Income Team

by Madaline Dunn June 21, 2024

written by Madaline Dunn

Global asset manager Franklin Templeton has announced the appointment of Dubai-based Hardeep Dogra as Portfolio Manager and Research Analyst on its Global Sukuk & MENA Fixed Income team.

The company shared that Dogra has 20 years of investment experience and was most recently employed at Alliance Bernstein’s London office, where he was Portfolio Manager for its Global Emerging Market Debt strategies, co-managing approximately $25 billion of AUM.

Prior to that, Dogra served as a portfolio manager at BNP Paribas Asset Management and Schroder Investment Management in London.

The FTFI Global Sukuk and MENA Fixed Income team is located in Dubai, Riyadh, Kuala Lumpur, and Hyderabad and has approximately $3.8 billion in assets under management.

Dogra commented: “I am thrilled to join such a dynamic and experienced team. Franklin Templeton is one of the world’s largest asset managers with more than 75 years of investment experience. In my new role as a member of one of the largest Global Sukuk teams in the industry, I look forward to contributing to the team’s ongoing success and capturing exciting opportunities across MENA and global emerging markets.”

June 21, 2024 0 comments