In July 2013 Swiber Holdings, an offshore marine company listed on the Singapore Exchange, and its wholly-owned subsidiary Swiber Capital, established a US$500 million multicurrency Islamic trust certificates issuance program based on the Shariah financing principle of Wakalah Bi Al-Istithmar.
Maybank Kim Eng Securities (Maybank KE) was the sole lead arranger, bookrunner and global coordinator for the program. Maybank KE and Maybank are the program dealers. Maybank Islamic is the Shariah advisor for the program.
Barely a week after the establishment of the program, the first series of SG$150 million (US$118.9 million) trust certificates was issued under the program and listed on the
Singapore Exchange. The inaugural issuance was fully subscribed by investors from Brunei, Singapore and Malaysia and (according to reports) the
Sukuk have been priced at a rate which was more competitive than conventional bonds.
The establishment of the program, rapidly followed by the successful pricing and sizable issuance of the maiden series, bodes well for the development of
Sukuk in Singapore. With the establishment of the SG$500 million (US$396.4 million) Islamic trust certificate program for
Sabana Shariah Compliant Industrial REIT earlier this year and media reports of further market activities, the overall positive trend for
Sukuk in Singapore is gaining momentum.
Yeo Wico is a partner at Allen & Gledhill. He can be contacted at
[email protected]
.