Fitch Ratings has assigned EIB Sukuk Company Limited’s USD fixed rate senior unsecured trust certificates an expected rating of ‘A+ (exp)’.
The Certificates (Sukuk) will be issued under EIB Sukuk Company Limited’s (EIBSC) $1billion Trust Certificate Issuance Programme as set out in the updated base prospectus dated 15 September 2011.
The final rating is contingent upon completion of the issuance and receipt of final documents conforming to the information previously received by Fitch.
EIBSC is a special purpose vehicle incorporated in the Cayman Islands by Emirates Islamic Bank PJSC (EIB; not rated), solely to act as the issuer of the Certificates and trustee for the holders of the Certificates. EIB is the 99.8% owned Islamic banking subsidiary of UAE-based bank, Emirates NBD PJSC (ENBD).
The rating assigned to the Certificates is driven by ENBD’s Long-term Issuer Default Rating of ‘A+’/Stable owing to the Sukuk structure where ENBD, as the guarantor, provides a direct and unconditional guarantee of EIB’s Sukuk obligations under the transaction documents as specifically set out in the Master Trust Deed. ENBD undertakes that its obligations under the guarantee will at all times rank at least pari passu with ENBD’s other senior unsecured obligations as stated in the Master Trust Deed and other transaction documents.
While the Master Trust Deed and other transaction documents governed by English law, may not be enforceable under applicable law, including, without limitation, Dubai law or UAE federal law, Fitch considers the provision of a guarantee by ENBD as part of this transaction as a strong indication of the parent bank’s intention to support EIB and its Sukuk obligations. Fitch’s rating for the Certificates therefore reflects the agency’s belief that ENBD would stand behind its obligations under the guarantee.