Dubai Islamic Bank, DIB, has successfully closed a US$1 billion long five-year Sukuk with a profit rate of 2.95 percent per annum, which is equivalent to 245 basis points (bps) over the equivalent tenor Mid Swap Rate.
A statement by the bank on Wednesday said, DIB’s $1 billion Sukuk is a landmark transaction as it is the first public benchmark Sukuk from a regional financial institution after the pandemic market disruption with the last Sukuk issuance from GCC being in February 2020.
The bank has in effect reopened the international Islamic capital markets for Financial Institution issuers from the UAE.
The Sukuk attracted more than 170 investors. Substantial international interest was visible in the Sukuk as the orderbook rose to over $4.5 billion – with nearly 50 percent emanating from outside MENA (Middle East and North Africa), an official press release said.
Dr. Adnan Chilwan, the Group Chief Executive Officer of DIB, commented, “With the issuance being subscribed nearly 4.5 times, DIB continues to remain an attractive credit in the capital market space. This transaction is a clear testament to the confidence the global markets place in the bank’s robust fundamentals, as well as investor comfort in the broader Dubai and UAE economy. It also clearly points towards investors’ appreciation of the economic measures and policy response of the UAE towards the pandemic”
The Sukuk was issued as a drawdown under DIB’s $7.5 billion Trust Certificate Issuance Programme which is listed on Euronext Dublin and Nasdaq Dubai.
Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, The Islamic Corporation for the Development of the Private Sector, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners on this transaction.
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