Clifford Chance

Clifford Chance advises Emirates Islamic on first issuance of AED-denominated sukuk further developing the AED yield-curve

International law firm Clifford Chance has advised Emirates Islamic, a leading Islamic bank in the UAE and 99.9% owned by Emirates NBD Bank PJSC, on its issuance of AED 1 billion 5.050 per cent. sukuk due February 2026. In completing the transaction, Emirates Islamic has become the first UAE Islamic financial institution to issue AED-denominated sukuk priced relative to the Federal Government’s Treasuries. The Sukuk were issued in accordance with Regulation S of the U.S. Securities Act of 1933, and are expected to be listed on Nasdaq Dubai.

The Federal Government’s UAE dirham Treasury Curve was established in April 2022 with the aim to develop the local currency debt market and offer local and foreign investors an opportunity to invest in UAE dirham-denominated securities, whilst building the UAE dirham yield curve.

Clifford Chance's team comprised partner and Head of Middle East Capital Markets, Stuart Ure, Mohsin Abbasi and Nader Koudsi.

Stuart Ure commented: "It has once again been a privilege to work alongside Emirates Islamic in support of the rapid development of the capital markets in the UAE – having acted for Emirates NBD Bank PJSC on their historic first issuance of AED-bonds, we now see Emirates Islamic issuing the first AED-denominated sukuk, further developing the local debt market."

Dubai Islamic Bank PJSC, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC and Standard Chartered Bank acted as joint lead managers in respect of the issuance, with Commercial Bank of Dubai PJSC acting as a co-manager.