Search DubaiPRNetwork.com

Home >> Banking & Investments

Wethaq launches first ‘fintech' Sukuk on its market infrastructure using SWIFT gpi Link

Tuesday, November 19, 2019/ Editor -  

Share

Home >> Banking & Investments

Dubai, 19 November 2019:   Today, Wethaq announced that it has issued the first pilot Sukuk on its securities market infrastructure for the Islamic capital markets under the supervision of the Dubai Financial Services Authority.  


Al Ghurair Investments LLC (AGI) acted as the issuer, advised by Mashreqbank PSC acting as lead arranger, R3 as protocol provider, Clifford Chance as legal counsel and the Dubai Islamic Economy Development Centre as mentor. 


There is substantial demand for Sukuk issuances globally with a significant number of them offered out of the Dubai International Financial Centre (DIFC). This pilot issuance demonstrated how Sukuk issuances can become more accessible with the application of financial technology to the issuance process which is, at present, manual, non-standardised and fragmented. 


Wethaq consolidates and automates the agency and infrastructure services required in the entire lifecycle of Sukuk product while enabling transaction participants and their service providers to interact more efficiently through digitized workflows.  


Wethaq’s fintech infrastructure is developed on R3’s Corda Protocol integrating SWIFT payment and settlement functionality through SWIFT gpi Link and, as a result, integrates with incumbent market infrastructures and avoids digital currencies and ‘tokenisation’ of securities. By using gpi Link, Wethaq will be able to seamlessly integrate SWIFT’s global payments innovation (gpi) service into its platforms, opening itself up to more than 3,500 banks around the world using the service. 


The session was opened by Bryan Stirewalt, Chief Executive of the DFSA, who said that: “The DFSA’s Innovation Testing Licence (ITL) programme is successfully encouraging and enabling innovation in the DIFC. Wethaq’s pilot issuance is a great example of this effort and a great example for the future of Islamic finance. Innovation is pushing the boundaries of financial services through these new technologies as we witness their integration into existing and evolving business models.” 


Mohammed Alsehli, CEO of Wethaq (Capital Markets) said that: “We are pleased to have achieved this milestone under our Innovation Testing Licence from DFSA with the generous support of the DIFC ecosystem. We are one step closer to releasing our infrastructure to the market and facilitating the Islamic capital market to reach its 4x growth potential.” 


At the event, Nabeel Waheed, AGI Group CFO, said “With this pilot, AGI is delighted to be the issuer of the first fintech Sukuk – a first of its kind globally. This pilot issuance matches AGI’s philosophy to be innovative and be early-adopters of technology across all our platforms.  We believe this market infrastructure is well positioned to combine finance and technology to expand Islamic Finance. We thank Mashreq & Wethaq for their association and support in this groundbreaking initiative.” 


Ahmed Abdelaal, CEO of Mashreq Bank, said: “At Mashreq, we recognize and embrace that our clients have a unique and diverse range of capital raising requirements and it is our strategic priority to provide them with innovative state–of-the-art solutions that meet their specific demands”. He added: “We continue to be at the forefront of digital transformation and our collaboration with a leading fintech company to positively disrupt market convention is an important

milestone in that journey. We are proud to be associated with the Wethaq – a platform that shall enable issuers, new and old, to raise Islamic capital via Sukuk.” 
Cathy Minter, Chief Revenue Officer at R3, said: “Wethaq’s contribution to the Sukuk market represents an important step in bringing the benefits of automation in Islamic capital markets. Its collaboration with the DFSA reflects R3’s own ethos of working closely with regulators to achieve sustainable results for the industries we are looking to transform. As such, we are proud that our Corda platform can enable Wethaq to deliver the promise of distributed ledger technology to Islamic capital markets. We look forward to seeing Wethaq achieve continued success.”  


Jack Hardman, Counsel, and Rafe Khokhar, Senior Associate, at Clifford Chance said: 'We are delighted to be involved in this landmark project. Wethaq's pilot issuance marks an important milestone in the development of fintech solutions for Sukuk transactions and we are excited by the potential application of the Wethaq technology in debt capital markets generally.' 


Onur Ozan, Head of Middle East, North Africa & Turkey, SWIFT, said: “We are delighted that Wethaq has chosen to integrate SWIFT gpi into its new infrastructure using SWIFT gpi Link, a gateway to interlink ecommerce and trading platforms with SWIFT gpi. It will enable the platform to offer fast, secure and transparent settlement provided through the SWIFT gpi banks.”

 


Previous in Banking & Investments

Next in Banking & Investments


Home >> Banking & Investments Section

Latest Press Release

Foreo Cements Its Position as One of the 10 Most Popular Beauty Brands on the Pl ...

The Trench Coat and Mac Edit'

Shine On with Flormar's Festive Coffrets

Adoption of district cooling services supports global trends to combat climate c ...

Aquadate Chrono Eberhard & Co. presents the chronograph version of its classic t ...

New artificial intelligence solutions to improve safety in aviation sector

Dubai Customs targets clients with financial services campaign

Freddy's Nakheel Mall Now Open

Dubai resident motors off with brand new Maserati in Nakheel Mall's AED1 million ...

Need a plan for the weekend? Al-Futtaim Toyota has got you sorted with the ‘Toyo ...

Botb - Short Film Fest is Back on Popular Demand

NYU Abu Dhabi researchers explore the long-standing sociocultural connection bet ...

New LG Gram Lineup Proves That Portability, Performance and Battery Life Can Coe ...

Indulge in authentic Indian delicacies at Desi Village Restaurant & Cafe

Renewable energy rises to the top of Middle East's energy agenda

Sohar University Joins Red Hat Academy

Aman Integrated Solutions Lab, first technologically advanced laboratory for tes ...

Love Your Skin Better with Sukin® Skincare

Team Abu Dhabi's Xcat World Champions Aim To Retain Title in Dubai Grand Finale

GEMS Education Holds Entrepreneurship Bootcamp for 500 Students from 20 schools