Pentavirate plans $500 million 10-year sukuk issuance

By Wendy Van Sickle

Columbus, Ohio, Sept. 17 – Pentavirate is planning a $500 million 10-year sukuk, according to a press release.

The Regulation S issuance would be backed by U.S. commercial real estate and would be only the sixth sukuk issuance in the United States, according to the release.

A lead arranger is expected to be selected and a roadshow to commence in October,

The debut offering is part of an overall $2.5 billion multi-tranche Wakalah sukuk program. The first tranche will target acquisitions of North America’s highest yield commercial real estate, including self-storage, parking assets and data centers.

“Our objective is to provide emerging-market investors with exposure to stable, Shariah-compliant assets in the developed markets,” Chad Gleason, Pentavirate's managing director, said in the release.

“Sukuk statistics show that 90% of issuers and 80% of their investors are in the Middle East and South East Asia; thus far, there has been a lack of developed market issuances that allow investors with Shariah mandates to diversify their portfolios toward fixed-income assets in high-growth Western economies. The few times these issuances have occurred, there was intense demand, with oversubscription being the norm.”

Seattle-based Pentavirate is an investment company that specializes in concierge-level investment advisory and services to international investors.

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