Page 30 - ICD AR21 EN

ICD to advise the Maldives on setting up a
USD 1.0 billion Sukuk Program
3.3 ICD ASSUMES ACTIVE
ROLE IN SUKUK ISSUANCE
2021 was envisaged to be a recovery year, however the cascading impact of new COVID-19 variants provided new challenges for countries and businesses alike. Nevertheless, conventional and Islamic debt capital markets witnessed a flurry of activity in 2021, continuing the momentum that began during the second half of 2020. Sovereigns and corporates have continued to take advantage of the relatively low rates available in the market. In particular, high-yield issuers have benefited from raising relatively cheap money as these types of issuances were at an all-time high by the end of 2021.
In 2021, ICD signed three new advisory mandates consisting of a liability management exercise for the Maldives and two subsequent tap issuances. These mandates fell under a greater mandate for ICD to advise the Maldives on setting up a USD 1.0 billion
In 2021, ICD signed
three new advisory mandates consisting of a liability management exercise for the Maldives and two subsequent tap issuances.
Sukuk Program. On 29 March 2021, the Maldives issued a USD 200 million, 9.875% coupon five-year sukuk with ICD as a joint lead manager. Subsequently, ICD successfully closed an additional USD 100 million tap sale in late April 2021. The proceeds were used partly to fund tender offers amounting to 76.8%
of the outstanding USD 250 million Eurobond
maturing in 2022 and to fund development projects.
On 21 September 2021, the sovereign raised another USD 200 million from a second sukuk tap. The September issue was oversubscribed by three times, with investors from pension funds, banks, hedge funds and asset managers from America, Europe, Nordic countries, Asia and the Middle East. In addition, it will also pave the way for inclusion in the Emerging Market Bond Index which is envisaged to broaden the Maldives’ investor base by bringing in institutional investors.
In 2021, ICD emerged as an active role player in the GCC sukuk market, playing key roles as joint lead managers and arrangers for four financial institutions in the region as well as for the Emirate of Sharjah of the United Arab Emirates. ICD was also able to secure a role in the IsDB Group sukuk issuance as joint lead manager and arranger. In total, ICD was able to raise USD 5.2 billion from the market in 2021, ranking it
in 13th place on the Bloomberg league tables for International Sukuk and US Dollar International Sukuk. ICD’s gross revenue for sukuk advisory was over USD 10 million in 2021.
28 ICD ANNUAL REPORT 2021