Successfully closed in September 2006, the groundbreaking US$150 million TID Global Sukuk I marked the first Sukuk to be structured with a put option for investors and a call option for the issuer. The put option allows each investor to exit the transaction at year three, while the call option allows the issuer the same flexibility at the same date.
The Sukuk was issued on behalf of Kuwait-based Investment Dar, a prominent Islamic financial institution active in a number of different areas, including consumer finance, investment, asset management and real estate. Established in 1994, the company is one of the largest financial institutions in the GCC region and has an issuer rating of A- by ICRA Limited, an Asian associate of Moody’s Investor Service, and a long-term rating of BBB by Capital Intelligence.
Unicorn and WestLB were the joint lead managers for the transaction, and Unicorn was also the structuring agent and Shari’ah advisor. WestLB’s London branch was the underwriter and sole bookrunner.
Over 15 banks and institutions from across the Middle East, Europe and Asia participated in the transaction.
In October 2006, TID Global Sukuk I was listed on the Dubai International Financial Exchange (DIFX), marking the first Kuwaiti company to list on the DIFX and the first financial institution to list a Sukuk on the Exchange.
| Issuer | TID Global Sukuk I Limited |
| Amount: | US$150 million |
| Maturity: | 5-year with put and call options (September 2011)3-year put option at Investor’s option
3-year call option at Issuer’s option |
| Profit rate: | Years 1-3: 6-month LIBOR + 125 bps p.a.Years 4-5: 6-month LOBOR + 175 bps p.a. |
| Issue type: | Sukuk al-Ijara |
| Transferability: | Freely transferable in accordance with Shari’ah principles |
| Structure: | SPV structure, with full recourse to TIDThe structure has been approved by the Shari’ah Supervisory Board of Unicorn Investment Bank BSC (c) |
| Listing: | Dubai International Financial Exchange (DIFX) |
