Entry on the Nakheel Sukuk from the Islamic Finance News “Deals of the Year” 2006 awards (presented without comment):
On the 14th December 2006 Dubai Islamic Bank (DIB) along with Barclays Capital closed the three year Pre-QPO Equity Linked Sukuk al-Ijarah of US$3.52 billion for Nakheel. DIB was the joint lead manager and bookrunner along with Barclays Capital. This transaction was the largest Sukuk issue to date in the history of Islamic banking and is the first of its kind in both Islamic and conventional capital markets.
TRANSACTION SUCCESS STORY
The main success story of the transaction was the lead managers placement ability as a result of which they achieved a high quality order book that was oversubscribed by 2.5 times, upsizing of the deal from US$2.5 billion to US$3.52 billion(an increase of over 40%) and tightening of the QPO spread range from the initial price guidance of 95/145bps to 120bps.
DISTRIBUTION
The Sukuk attracted a well-diversified global investor base with demand exceptionally strong from Middle Eastern investors followed by investors in Europe, Asia and the rest of the world.
So, take a bow Dubai Islamic Bank and Barclays Capital.
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