APICORP Sukuk $500m Listing Strengthens Nasdaq Dubai’s Debt Market
Arab Fund for Energy’s APICORP sukuk $500m listing on Nasdaq Dubai deepens the sukuk market and was oversubscribed amid strong international demand.
The Arab Fund for Energy has listed $500 million of trust certificates on Nasdaq Dubai in a move that market participants say will deepen the exchange’s sukuk market. The APICORP sukuk issue, placed via APICORP Sukuk Limited, carries a 4.686% profit rate and matures in 2031.
Nasdaq Dubai Welcomes APICORP $500m Sukuk
Nasdaq Dubai announced the admission of the $500 million issuance yesterday, highlighting the long-standing relationship between the exchange and the Arab Fund for Energy. The listing is expected to broaden choice for fixed-income investors in the region and reinforce the exchange’s role as a hub for sukuk issuance.
Officials from Nasdaq Dubai joined senior executives from the issuer for a market opening ceremony to mark the new listing. Market sources said the transaction underscores continued appetite for high-quality supranational debt on the Dubai platform.
Terms and Structure of the Issue
The issuance was executed under the issuer’s trust certificate programme through APICORP Sukuk Limited, with instruments classified as senior unsecured debt. The sukuk carry a profit rate of 4.686% and were priced at a spread of 70 basis points over the Secured Overnight Financing Rate (SOFR).
The securities are scheduled to mature in 2031, giving investors a defined medium-term exposure to a supranational borrower. Legal and documentation arrangements follow standard international trust certificate structures to accommodate global investor participation.
Strong Investor Demand and Pricing Improvement
Bookrunners recorded subscription orders exceeding $900 million, delivering more than two times coverage of the offer size and enabling an improvement in final pricing versus initial guidance. Syndicate banks noted the strength of the order book allowed for better allocation and tightened terms.
Market participants attributed the firm demand to the issuer’s credit standing and investor search for yield in a selective market. The achieved pricing reflects investor willingness to absorb supranational paper when credit and tenor align with portfolio needs.
Investor Mix and Geographic Reach
The transaction attracted a geographically diverse investor base, with allocations to central banks, sovereign entities, multilateral institutions, and SSA (sovereigns, supranationals and agencies) accounts. Bank treasuries and high-quality institutional investors also formed a meaningful portion of the final book.
Syndicate feedback indicated a balanced distribution across Europe, the Middle East and Asia, which underpinned both depth and secondary-market prospects. This cross-border demand is consistent with recent patterns for well-rated dollar-denominated sukuk.
Impact on Nasdaq Dubai’s Sukuk and Debt Listings
With this admission, the total value of sukuk listed on Nasdaq Dubai rises toward $98.6 billion, according to exchange data released alongside the announcement. Total debt listings on the exchange now exceed $141 billion, reflecting contributions from sovereigns, multilaterals, financial institutions and corporates.
Analysts said the new listing helps diversify the issuer mix on the exchange and enhances liquidity for dollar-denominated Islamic and conventional debt instruments. The sustained flow of supranational and sovereign-linked paper is seen as a positive sign for market development in the Gulf.
Ceremony and Official Statements
Khaled Al-Ruwaig, chief executive of the Arab Fund for Energy, rang the opening bell at Nasdaq Dubai alongside Hamid Ali, chief executive of Dubai Financial Market and Nasdaq Dubai, and senior representatives from both organizations. The public ceremony highlighted the strategic collaboration between issuer and exchange.
Viki Bhatia, head of finance at the Arab Fund for Energy, said the successful placement reflects the institution’s credit strength and ability to execute during challenging market conditions. Nasdaq Dubai commented that the issuance supports the exchange’s objective to deepen and diversify its sukuk franchise.
This listing is the latest in a sequence of sukuk and debt admissions that have cemented Nasdaq Dubai’s position as a regional centre for fixed-income securities, adding another well-subscribed supranational transaction to the exchange’s record.
