Arabian Post Staff -Dubai
The senior unsecured sukuk, issued through APICORP Sukuk Limited under The Arab Energy Fund’s Trust Certificate Issuance Programme, comprises trust certificates due in 2031. It carries a profit rate of 4.686 per cent and was priced at 70 basis points over SOFR, reflecting demand for high-grade regional paper despite tighter global credit conditions.
The transaction drew orders of more than USD 900 million and was twice oversubscribed, allowing pricing to tighten from initial guidance. Demand came from a diversified investor base including central banks, sovereign institutions, supranational bodies and agency investors, underlining the fund’s credit standing and the continued appetite for investment-grade sukuk linked to energy transition and infrastructure financing.
The certificates are rated Aa2 by Moody’s and AA+ by Fitch, broadly in line with the fund’s long-term credit profile. The deal follows a USD 500 million 10-year sukuk listing by The Arab Energy Fund earlier this year, making the latest issue part of a broader funding strategy intended to support sustainable energy development across Arab markets.
Khalid Ali Al-Ruwaigh, chief executive officer of The Arab Energy Fund, marked the listing by ringing the market-opening bell at Nasdaq Dubai alongside Hamed Ali, chief executive officer of Nasdaq Dubai and Dubai Financial Market, and senior representatives from both organisations.
Vicky Bhatia, chief financial officer of The Arab Energy Fund, said the transaction demonstrated both the strength of the fund’s credit profile and its ability to operate in difficult market conditions. He said pricing at SOFR plus 70 basis points with no new issue premium showed investor confidence in the fund and its mandate.
Hamed Ali said the listing added depth to Nasdaq Dubai’s sukuk market and reflected continued activity from supranational issuers in regional debt capital markets. He said the fund’s fourth listing on the exchange highlighted the role of established issuers in supporting market development and expanding investment opportunities for regional and international investors.
The listing comes as Dubai continues to consolidate its position as a leading international centre for sukuk and conventional debt securities. The total outstanding value of sukuk listed on Nasdaq Dubai now exceeds USD 98.6 billion, while overall outstanding debt listings on the exchange have surpassed USD 141 billion across sovereign, supranational, financial institution and corporate issuers.
The sukuk market has remained active as borrowers seek to balance refinancing needs with investor demand for high-quality Sharia-compliant assets. Gulf issuers have benefited from relatively strong sovereign and corporate balance sheets, while international investors have continued to view the region as a source of yield, credit quality and diversification.
The Arab Energy Fund, established in 1974 by ten Arab oil-exporting countries, has increasingly positioned itself as a multilateral impact financial institution focused on energy security, sustainability and value-chain development. Its activities cover debt, equity and advisory solutions across the energy ecosystem, with a mandate spanning public and private sector clients in more than 35 markets.
The fund’s financing model has evolved as regional energy policy shifts from a narrow hydrocarbons focus to a broader mix that includes gas, power, renewables, infrastructure, technology and energy-related services. Environmental and socially linked projects account for about a fifth of its USD 5.8 billion loan portfolio, reflecting the growing role of impact-linked financing in the region’s energy sector.
Its financial performance has also supported market access. The fund reported USD 282.4 million in net income for 2025, while total assets rose to USD 13.4 billion, helped by asset growth and a resilient funding profile. Its credit ratings remain among the strongest for a regional multilateral institution focused on energy.
For Nasdaq Dubai, the listing reinforces a debt capital market strategy built around international issuers, dollar liquidity and Islamic finance. The exchange has attracted sukuk from governments, banks, corporates and supranational institutions, providing issuers with visibility among investors that track regional and global fixed-income securities.
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