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Alpen Capital advises DIPDC on its landmark Sukuk offering

Dubai, 17th February, 2014

Alpen Capital, a leading investment bank in the region, advised Dubai Investment Park Development Company LLC (DIPDC) on its USD 300 million debut Sukuk offering. Alpen Capital also advised DIPDC on its Ratings ahead of the Sukuk offering. The landmark transaction, structured as a Wakala Sukuk and issued through a special purpose vehicle (DIP Sukuk Limited), is the first USD Sukuk from the Middle East in 2014. The issue was oversubscribed by 13 times which represents one of the highest levels of oversubscription achieved by a corporate issuer in the international Sukuk and conventional markets from the region.

Following a series of investor meetings targeting key investors across the UAE, London and Singapore, DIPDC was able to capitalise on the positive investor feedback and appetite to raise USD300 million. DIPDC garnered positive interest from the outset with the orderbook growing very rapidly after release of initial price thoughts at MS+ low 300s basis points. Ultimately, DIPDC was able to price a USD 300 million Sukuk with a yield of 4.291 per cent (equivalent to a spread of 265bps over 5Y USD Mid-Swaps) on the back of an orderbook that peaked at over USD4 billion.

"Alpen Capital is delighted to have advised on this successful and complex transaction. We value our relationship with DIPDC and the overall DI Group and are privileged to have assisted them in relation to their landmark debut Sukuk offering" says Sanjay Vig, Managing Director, Alpen Capital

Khalid Jassim Mohd. Bin Kalban, Chairman and Managing Director, DIPDC says: "we set out on this exercise with dual objectives of creating awareness about Dubai Investments Park and building a relationship with the international fixed income community. We are extremely pleased to have achieved both objectives"

The orderbook was well-balanced both by geography and investor type with notable high quality orders from international Emerging Markets investors. Geographically, Europe and UK accounted for 49 per cent, Middle East for 32 per cent, Asia for 17 per cent while other accounts took 2 per cent. The distribution of the Sukuk amongst investors were 65 per cent to asset and fund managers, 27 per cent to banks, 7 per cent to private banks and insurance and pension funds held 1 per cent.

Al Hilal Bank, Citigroup, Dubai Islamic Bank PJSC and Emirates NBD Capital acted as Joint Lead Managers and Joint Bookrunners.

DIPDC, rated BB / Stable (S&P), is a wholly-owned subsidiary of Dubai Investments PJSC – the largest investment company listed on the Dubai International Financial Market. DIPDC operates Dubai Investments Park (DIP), a unique, self-contained mixed-use industrial, commercial and residential complex. Spread across an area of 23 million sq. meters, DIP is a city within a city offering world-class infrastructure and outstanding facilities and services.