Ezdan Holding Group has witnessed 1.67 times oversubscription in its inaugural $500mn sukuk, the first ever international issuance by a private sector Qatari corporate in the debt capital markets.
“The transaction attracted an order-book up to $837mn, with 71 investors participating,” an Ezdan spokesman said, adding the company will pay a fixed coupon of 4.375% per annum.
Investors from the Middle East subscribed for 68% of the issuance, European investors 21% and Asian investors 11%, he said, adding in terms of distribution by investor type, banks took 47% of the issue amount, fund managers 27%, private banks 19% and other institutional investors 7%.
The company had tapped the international markets with its $500mn five-year sukuk, as part of its $2bn programme and it was concluded after an extensive investor roadshows in Hong Kong, Singapore, the UAE and the UK.
“The coverage amount has almost doubled than the offered in a record time, which is an indication that Ezdan Holding Group is a trustworthy and reliable entity in the world of finance,” its chairman Sheikh Dr Khalid bin Thani bin Abdullah al-Thani said.
This (capital raising) would boost its strategy to reinforce the group’s investments domestically and globally over the next few years, he added.
The process of sukuk issue is regarded one of the means Ezdan Holding Group used as a remarkable transaction in the debt capital markets worldwide, aiming at expanding its investments and stimulating the group’s investments and their returns.
“The highly successful offering demonstrates the confidence which international investors place in the group and confirms the access to funding which our institution enjoys from the Islamic finance market,” according to Ezdan Holding group chief executive Ali Mohamed al-Obaidli.
Ahmed Abdelaal, regional head of client coverage, HSBC Middle East and North Africa - which is one of the joint global coordinators for the issue - said it is a tremendous accomplishment for the Ezdan, and marks another milestone in its journey. “It also plays to the strengths of the Qatar market as it further attracts opportunities for international investors,” he added.
Jan-Willem Sudmann, group head of International Banking Group, Mashreqbank, said it played a pivotal role in leading Ezdan to the door-steps of capital markets, as the global coordinator and joint lead manager and book runner.
“This is a landmark transaction for a leading Qatari name and successfully closing it within a volatile period for the capital markets is a tribute to the quality of the issuer,” said Khalid al-Subeai, group chief executive of Barwa Bank, which along with Abu Dhabi Islamic Bank, Emirates NBD Capital, Qatar First Bank and QInvest, acted as joint lead managers.