CITI APPOINTED AS DELEGATE TRUSTEE & PAYING AGENT FOR FIRST SUKUK CLEARED THROUGH NASDAQ DUBAI
Structure supports growth of Dubai as a centre for debt custody and clearing
London, Dubai - January 12, 2010 – Citi’s Global Transaction Services business today announced that Citi Issuer Services has been appointed as the Issuing and Paying Agent for the first Sukuk to be cleared through the central securities depositary (CSD) of NASDAQ Dubai, the international stock exchange serving the Middle East. The $100m Sukuk, issued by the International Finance Corporation (IFC), listed on November 4, 2009.
NASDAQ Dubai now has 22 listed Sukuk with a nominal value of US$17.2 billion. The Sukuk issued by IFC, which is part of the World Bank Group, is the first one that uses the NASDAQ Dubai CSD to hold its securities. Citi will be providing the Paying Agency and Delegate Trustee roles on the Sukuk for the life of the deal. Furthermore, as this was a ground-breaking deal, the transaction required Citi to open and administer a "New Issues account" opened with the NASDAQ Dubai to create and deliver the securities into the primary market.
Steve Donovan, Head of Global Transaction Services, Middle East and Pakistan said," As a leading global issuing & paying agent, Citi is thrilled to be extending these services for the first time through the NASDAQ Dubai CSD in this landmark deal. The listing and clearing of the IFC Sukuk is a significant step forward in the further development of Dubai and the Middle East as a centre of excellence for the clearing, settlement and custody of debt securities. Additionally, the inclusion of this new domestic market to the Issuer Services suite of domestic capabilities underscores the growing recognition of our Securities and Funds Services business in the Middle East and our ongoing commitment to the region".
Jeff Singer, Chief Executive of NASDAQ Dubai, said, "As Dubai expands as a centre of Islamic finance, NASDAQ Dubai looks forward to listing more Sukuk and supporting these through its CSD. The successful handling of the IFC Sukuk demonstrates the efficiency and cost effectiveness of the exchange’s CSD framework, which can also handle conventional bonds. Citi’s role as issuing and paying agent has played a key part in the success of the IFC Sukuk listing."
Citi has been in the Arab world for nearly 50 years and continues to view the region as critical to its global franchise. It is currently present in 10 Arab countries including Egypt, UAE, Lebanon, Jordan, Tunisia, Morocco, Algeria, Bahrain, Qatar and Kuwait.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through its two operating units, Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com. For more information on Citi’s Depositary Receipt Services, visit www.citi.com/dr.
About Citi Global Transaction Services
Global Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citi’s Global Transaction Services supports over 65,000 clients. As of the third quarter of 2009, it held on average $314 billion in liability balances and $11.8 trillion in assets under custody.
About NASDAQ Dubai
NASDAQ Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, exchange-traded commodities, structured products, Sukuk (Islamic bonds) and conventional bonds.
The majority shareholder of NASDAQ Dubai is Borse Dubai with a two-thirds stake. NASDAQ OMX Group owns one third of the shares. The regulator of NASDAQ Dubai is the Dubai Financial Services Authority (DFSA). NASDAQ Dubai is located in the Dubai International Financial Centre (DIFC). For more information, visit www.nasdaqdubai.com.