Thursday, June 07, 2007

DP World, DIFC issue sukuk

DP World, the company which issued the first convertible sukuk with its five year, $3.5 billion issue in early 2006, plans to issue two more sukuk (one 10-year sukuk and one "very long term" sukuk). The purpose of the issue is to 'extend its maturity profile'.

The Dubai International Financial Centre priced its first sukuk issue (al-mudabara sukuk) of $1.25 billion with a "profit participation rate" of 37.5 basis points (0.375%) above the London interbank offered rate (LIBOR).

Brunei's Islamic banking industry has 27 percent market share. The Sultanate plans on adding a longer-term sukuk issue in the future to its 91-day sukuk al-ijara.

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