Ezdan Holding Group: Successful second issuance of $500mn sharia compliant Sukuk under $2 bn programme
Al-Obaidli: We consider debt capital markets a key source of funding that will enable us to maintain a diversified and continued growth.
Ezdan Holding Group announced that the second issuance of its $500 million Sharia compliant Sukuk issue, in 5 years maturity, has recorded 240% oversubscribed, reaching at a fixed coupon of 4.875% per annum, with 129 investors from around 30 countries participating. This comes within the framework of the Group’s Sukuk programme agreed by the ordinary general meeting, which had approved issuing Islamic Sukuk worth $2 billion.
The Group has recently announced the appointment of HSBC and Mashreq bank as joint global coordinators, joined by Dubai Islamic Bank, Emirates NBD Capital, HSBC, Mashreq Bank, Natixis, Standard Chartered and QInvest as joint lead managers. Ezdan launched the Sukuk on the back of an international extensive roadshow, visiting key investors in Asia, the Middle East and Europe.
Investors from the Middle East took 58% of the issuance, with European investors subscribing for 28% and Asian and other investors taking 14%. In terms of distribution by investor type, banks took 46% of the issue amount, followed by fund managers with 32%, private banks with 12% and other institutional investors with 10%.
In this context, Chief Executive Officer of Ezdan Holding Group Mr. Ali Mohammed Al Obaidli, pointed out: “We are very pleased at the excellent market reception to Ezdan's second Sukuk issue. The strong demand for the Company’s second Sukuk is a clear sign of support for the economic fundamentals of Qatar as well as a testament to the continuous sponsorship to Ezdan’s credit from regional and international investors. Investors’ strong interest resulted in the order book being 2.4 times oversubscribed, reaching US$ 1.2 billion, more than the oversubscription 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”, Obaidli added.
Al Obaidli concluded: "Today's success is remarkable and shall be attributed to the wise leadership of the Group and its effective vision for the advancement of our plans and investments amidst volatile market conditions and challenges. The second sukuk issuance attracted 129 investors from 30 countries participating, and we will spare no effort to attract more and continue building wider international investor recognition.
Ezdan Holding Group has recently disclosed its annual financial results, revealing profits of more than QR 1.81 billion at the end of 2016 compared to QR 1.66 billion for the year 2015, a jump of 9%. The Group Earnings per Share (EPS) increased to QAR0.68 compared to QAR0.63 in 2015”
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
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)