Dubai Islamic Bank PJSC (“DIB”), rated A3 by Moody's and A by Fitch successfully priced a landmark USD 750 million 5-year Sukuk issue with a profit rate of 2.74% per annum.
The deal represents the first Sukuk from the United Arab Emirates in 2022, paving the way for other issuers to access the international Sukuk market. DIB continues to be the leader in Islamic finance, with an established and strong investor following from Europe, Asia and the Middle East. Despite investor concerns around the global interest rate environment, DIB successfully priced its Sukuk with no new issue premium which is testament to the bank’s strong credit profile and sound business strategy.
The Sukuk was priced after completing a comprehensive marketing exercise where DIB updated investors on its positive financial performance especially during the last year. Investor demand was strong with an orderbook that was more than 2.5 times oversubscribed.
Dr. Adnan Chilwan, Group Chief Executive Officer, DIB, commented, “The success of this transaction highlights the confidence investors placed on DIB and reaffirms their commitment to the UAE. Final pricing at 95 basis points over the 5Y US Treasury represents the lowest-ever credit spread on any of our fixed-rate Senior Sukuk issuances - an achievement all the more noteworthy given the current volatile state of markets. We are very pleased with the outcome of our issuance which is expected to set a precedent for other Islamic banks to follow”.
The Sukuk will be issued by DIB Sukuk Ltd. and will be listed on Euronext Dublin and NASDAQ Dubai.
Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, KFH Capital, HSBC, Sharjah Islamic Bank, Standard Chartered Bank and The Islamic Corporation for the Development of the Private Sector acted as Joint Lead Managers and Bookrunners on the transaction.
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