Dubai/London: Fitch Ratings has assigned DIB Sukuk Limited’s (DIB Sukuk) new issuance an expected senior unsecured rating of A (EXP).
The sukuk will be issued under DIB Sukuk’s trust certificate issuance programme under which total issuance may be up to a maximum $2.5billion equivalent. The final rating is contingent on the receipt of final documents conforming to the information already received.
DIB Sukuk, a legal entity incorporated in the Cayman Islands, is set up solely to act as the issuer of the certificates and trustee for the certificate holders.
The trust certificate issuance programme’s expected rating is driven by Dubai Islamic Bank PJSC’s (DIB) ‘A’ Long-term Issuer Default Rating, reflecting Fitch’s view that default of these senior unsecured obligations would reflect default of the entity in accordance with Fitch’s rating definitions. The rating also takes into account the sukuk’s structure and documentation.
The programme includes a negative pledge provision binding DIB, as well as financial reporting obligations, covenants and cross-default clauses. The documentation does not contain a change of control clause.
The master trust deed, each supplemental trust deed, the programme agreement, the agency agreement, the service agency agreement, the purchase undertaking, the sale undertaking and any non-contractual obligations arising out of or in connection with the same will be governed by English law. Fitch also notes that any dispute may also be referred to the courts in England or the courts of the DIFC. The master purchase agreement and any supplemental purchase contract and any sale and/or transfer agreement entered into pursuant to the purchase undertaking or the sale undertaking, will be governed by and construed in accordance with the laws of the Emirate of Dubai and, to the extent applicable in Dubai, the federal laws of the United Arab Emirates. The corporate services agreement and the registered office will be governed by the laws of the Cayman Islands.