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DIFC-based investment bank Alpen Capital has advised Dubai Investment Park Development Company LLC (DIPDC) on its $300 million debut Sukuk offering. Alpen Capital also advised DIPDC on its Ratings ahead of the Sukuk offering. The landmark transaction is structured as a Wakala Sukuk and issued through a special purpose vehicle (DIP Sukuk Limited). The issue was oversubscribed 13 times. DIPDC was able to price the Sukuk with a yield of 4.291 per cent (equivalent to a spread of 265bps over five-year USD Mid-Swaps) on the back of an order book that peaked at over $4 billion. Al Hilal Bank, Citigroup, Dubai Islamic Bank PJSC and Emirates NBD Capital acted as Joint Lead Managers and Joint Bookrunners.

The Gulf insurance industry is growing as government spending increases but the sector is suffering from overcapacity in certain markets, which threatens to drive the smaller insurance companies into financial turmoil. Generally, the low level of penetration levels in the Gulf region has granted ample room for the insurance sector to flourish, according to an insurance report by Dubai-based Alpen Capital. The rising wealth of a young population, an increase in expatriate numbers and a growing awareness of insurance products are all helping to boost the industry. Regulators can play a role by developing guidelines to further ensure both the financial strength of insurance firms and the protection of customers.

The GCC Takaful report caters to investors looking for investment opportunities in the Gulf Cooperation Council (GCC) Takaful (Islamic Insurance) industry. The focus of the report is on opportunities and challenges for growth of the industry, industry trends, financial performance, valuations, stock liquidity and governance & transparency.

Alpen Capital expects the GCC Takaful industry:

• to grow at a CAGR of approximately 16.1% per annum in 2009 to 2012.

• to continue to grow faster than conventional insurance.

Full details of the findings are in the report for download at the below source.