PHL marks maiden 5.5-year dollar Sukuk listing in Nasdaq Dubai

Commemorating the listing of the Republic of the Philippines’ (the “Republic”) 5.5-Year Dollar Sukuk in Nasdaq Dubai on December 8, 2023, Secretary of Finance Benjamin E. Diokno and Nasdaq Dubai and Dubai Financial Market (DFM) CEO Hamed Ali rang the market opening bell at the Nasdaq Dubai MarketSite.

Headlining the other participants in the ceremony were Philippine Ambassador to the UAE His Excellency Alfonso Ferdinand A. Ver, Dubai Consul General Hon. Renato N. Dueñas Jr., and Finance Undersecretary Maria Luwalhati C. Dorotan Tiuseco.

The Republic has chosen Nasdaq Dubai as one of the exchanges for the listing of its maiden Sukuk, being one of the leading exchanges for fixed income listings with a total USD 127.41 billion in debt issuance, of which USD 42.30 billion is in conventional bond listings and USD 85.11 billion in sukuk issuances.

The Sukuk, worth USD 1 billion of Trust Certificates due in 2029 was successfully priced at T+80 bps, with a profit rate of 5.045% and orderbook’s oversubscription reaching 4.90x.

Steadfast in its commitment to develop Islamic banking and finance in the Philippines, the Republic, through the inaugural Sukuk issuance, is provided access to a broader international investor base by tapping Islamic-focused investors across the Middle East.

Commenting on the Maiden Sukuk issuance and the listing ceremony, Secretary Diokno remarked, “The listing of the ROP’s maiden sukuk issuance in Nasdaq Dubai affirms the Philippine Government’s commitment to further its ties with the Gulf Cooperation Council. This marks a significant step towards enhancing the Islamic finance market in the Philippines, bearing in mind its importance in unlocking the potential of the Southern Philippines and in the deepening of economic ties with the Arab world.”

Considering the USD 3 billion triple-tranche conventional bond issued in January 2023, the net proceeds from the Sukuk issuance complete the Republic’s external commercial funding for the current Fiscal Year, which will be used for general purposes, including but not limited, to budgetary support.