Lunate Capital Launches Chimera J P Morgan Global Sukuk ETF on ADX

Lunate Capital LLC, an Abu Dhabi-based management company licensed by the Securities & Commodities Authority (SCA), and a subsidiary of Lunate Holding RSC Limited, on Monday announced the launch of the Chimera J P Morgan Global Sukuk ETF, an exchange traded fund (ETF) that is scheduled to list on the Abu Dhabi Securities Exchange (ADX) on July 8.

The Chimera J P Morgan Global Sukuk ETF will track the performance of the J P Morgan Global Investment Grade Sukuk Index using a sampling strategy. The index currently includes more than over 70 liquid, USD-denominated Sukuk instruments across several global markets.

The Fund will be tracking global Islamic bonds to tap the growing demand for stable investment opportunities in the region and the Lunate Holdings RSC Limited manages $105 billion through its subsidiaries.

The ETF is structured to include an array of prominent investment grade sovereign, quasi-sovereign and corporate Sukuk issuers. Investors can subscribe through six authorized participants as well as through the ADX eIPO investor portal from 24 June, Lunate Capital said.

Second Fixed Income ETF

Sherif Salem, Partner & Head of Public Markets at Lunate, said that the Lunate’s Chimera J P Morgan Global Sukuk ETF is a unique product which will provide clients with access to a diversified portfolio of global Shariah-compliant corporate and government Sukuks.

“This marks our second fixed income ETF launch this year and the 16^th on the UAE stock markets, highlighting our commitment to providing our clients with customised solutions, including specialist Shariah-compliant instruments,” Salem said.

ADX Grop CEO Abdulla Salem Alnuaimi highlighted the importance of Islamic financing instruments like Sukuks for investors.

Alnuaimi added: “We welcome the launch of the Chimera J P Morgan Global Sukuk ETF. Upon listing, this will be the 14^th ETF on the exchange and second fixed income ETF. This ETF offers direct access to local, regional, and global fixed income markets, meeting increasing investor demand for stable investment opportunities. Its addition strengthens Abu Dhabi’s position as a hub for finance and investment and reflects the growing interest in ETFs as versatile investment tools.”

Hani Kablawi, Head of International, BNY, said that this latest ETF offering provides greater opportunity for investors and Lunate Capital continues to extend their product and geographic reach and, in doing so, continue to depend on our global platform, expertise and scale.

The ETF will be managed by Lunate Capital LLC, which is licensed by the SCA as a management company.

BNY will act as the ETFs’ global custodian. The authorized participants for the Fund include International Securities, EFG-Hermes, Arqaam Securities, FAB Securities, Daman Securities, and BHM Capital. It may be recalled that the UAE’s first exchange traded fund tracking a Sharia-compliant index was launched by Chimera Capital which began trading on the ADX and the Dubai Financial Market (DFM) in August 2020.