For a term of 5 years
Dubai Islamic successfully issues $750 million sukuk
Dubai Islamic Bank announced that it has succeeded in pricing the issuance of sukuk worth $750 million with a maturity of five years, with a profit rate of 2.74% per annum.
This deal represents the first sukuk issuance from the UAE for the year 2022, paving the way for other issuers to access the international sukuk markets.
In a statement, the bank stated that it continues to lead the Islamic finance sector, with strong follow-up and interest from various investors from Europe, Asia and the Middle East.
He added that despite investors' concerns about global rates, Dubai Islamic Bank succeeded in issuing its sukuk without a premium to the new issue, which is evidence of the bank's strong credit position and rational business strategy.
The bank explained that the sukuk was priced, after completing a comprehensive marketing process in the market, during which Dubai Islamic Bank informed investors of its positive financial performance, especially during the past year, at a time when the subscription witnessed a large turnout from investors, as the volume of the subscription exceeded more than 2.5 times.
The CEO of Dubai Islamic Bank Group, Dr. Adnan Chilwan, said that the success of this transaction confirms the confidence of investors in Dubai Islamic Bank, and emphasizes their commitment to the UAE.
He added: “The final pricing of this issue at 95 basis points for five years in US dollars represents the lowest ever credit margin of any of our premium fixed rate sukuk issuances.
This is a noteworthy achievement in light of the volatile state of the market.”
Chilwan expressed his happiness with the results of this latest deal, expecting it to set a precedent for other Islamic banks to follow suit.
According to the statement, the sukuk was issued under the Dubai Islamic Bank Limited Sukuk Program and listed on Euronext Dublin and Nasdaq Dubai.
Bank ABC (Arab Banking Corporation), Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, KFH Capital, HSBC Bank, Sharjah Islamic Bank, Standard Chartered Bank and the Islamic Corporation for the Development of the Sector were authorized private placement, to act as joint lead bookrunners and joint bookrunners for these Sukuk.
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