- The issuance is the first of its kind in Kuwait under Warba Bank’s sustainable finance framework
- The sukuk attracted robust investor interest with orders totaling $1.8 billion
RIYADH: Nasdaq Dubai has listed $500 million in sustainable trust certificates issued by Kuwait’s Warba Bank, marking a significant advancement in the region’s financial sector.
The issuance, the first of its kind in Kuwait under Warba Bank’s sustainable finance framework, is part of a broader $2 billion trust certificate program, according to a press release.
The sukuk, which attracted robust investor interest with orders totaling $1.8 billion — 3.6 times the issuance size — underscores a growing appetite for sustainable investment opportunities in the Middle East.
This Warba Bank Sukuk received an overwhelming positive response from investors, with orders reaching USD 1.8 billion, which is 3.6 times the issuance size, showing a strong demand underscores the growing appetite for sustainable investment opportunities in the region.
— Nasdaq Dubai (@NasdaqDubai) August 12, 2024
The global sukuk market, linked to environmental, social, and governance principles, is expected to exceed $50 billion in the next two years, driven by funding diversification goals, according to Fitch Ratings.
Other factors catalyzing the growth of these Shariah-compliant debt products include new ESG mandates, regulatory frameworks, and government-led sustainability initiatives.
With this latest listing, Warba Bank’s total sukuk on Nasdaq Dubai now stands at $1.25 billion across three listings. The five-year certificates are intended to finance sustainable projects, aligning with global sustainability objectives.
The listing further strengthens Nasdaq Dubai’s position as a platform for both fixed-income and ESG listings.
The exchange now hosts $134 billion in listed fixed-income securities and $30 billion in ESG listings, of which $18 billion are ESG sukuk, including the latest issuance by Warba Bank.
Source: Arab News
