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ADIB to launch fractional sukuk with a min USD 1k investment: Abu Dhabi Islamic Bank (ADIB) is set to debut fractional sukuk after successfully trialing the offering under the supervision of the Securities and Commodities Authority (SCA), according to a statement. With a minimum investment of USD 1k instead of the typical USD 200k, the fractional sukuk will help a wider pool of retail investors access the market.
About the new offering: In collaboration with the federal government’s RegLab, the authority tested several “flexible” regulations for the fractional sukuk tech, which digitally divides corporate sukuk into smaller portions. This enables individual investors to pool their funds and purchase fractional shares of high-value corporate sukuk.
What’s next? With the trial phase now complete, RegLab will develop a legislative framework for the sukuk tech.
REFRESHER- Emirates Islamic debuted the region’s first fractional sukuk in April, allowing investors to access the market with a minimum investment requirement of USD 25k.
