Abu Dhabi’s Lunate Capital, licensed by the ADGM Financial Services Regulatory Authority (FSRA), has unveiled the launch of the Chimera JP Morgan UAE Bond UCITS ETF, the UAE and GCC’s premier UAE bond Exchange Traded Fund (ETF).
The Chimera JP Morgan ETF will be listed on the Abu Dhabi Securities Exchange (ADX).
Breaking Ground with the First ETF for UAE, GCC Bonds
This ETF will track the performance of the J.P. Morgan MECI UAE investment-grade custom index, consisting of liquid, USD-denominated bonds from the UAE.
A trailblazing initiative in the UAE and GCC, the Chimera JP Morgan UAE Bond UCITS ETF will grant global investors access to a diversified portfolio of UAE bonds with minimal investment prerequisites, as outlined by the firm.
The ETF will contain investment-grade sovereign, quasi-sovereign, and corporate bond issues with a face amount outstanding of at least $500 million, providing investors with a distinctive opportunity to engage in the UAE’s vibrant bond markets.
Lunate Capital, a subsidiary of Lunate Holding RSC Limited, has confirmed that its ETF adheres fully to UCITS regulations, including mandates for portfolio holdings diversification, and will commence trading on the ADX on March 26.
Sherif Salem, Partner and Head of Public Markets at Lunate, stressed the firm’s commitment to offering clients tailored solutions and products that broaden their access to financial strategies and markets.
“The bond ETF will complement our suite of 13 equity ETFs currently listed on the UAE stock markets – offering investors access to some of the most liquid sovereign and corporate bonds of the country’s leading issuers,” he said.
Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, highlighted that this new addition represents a significant milestone for ADX and bolsters Abu Dhabi’s role as a leading international financial hub, according to Arabian Business.
“Lunate’s Chimera UAE Bond ETF provides investors with an exceptional opportunity to enter the fixed-income market, granting investors exposure to a diversified portfolio,” he said.