Dubai Islamic Bank said to issue $750m sukuk soon

UAE's largest sharia-compliant bank this week reported a 26% rise in Q4 net profit
Dubai Islamic Bank said to issue $750m sukuk soon
By Reuters
Thu 18 Jan 2018 04:07 PM

Dubai Islamic Bank, the largest sharia-compliant bank in the United Arab Emirates, is expected to issue as soon as next week a US dollar-denominated Islamic bond in the region of $750 million, sources familiar with the matter said.

The bank, which this week reported a 26 percent increase in fourth-quarter net profit, has appointed a group of banks including HSBC and Standard Chartered for the planned Islamic bond, or sukuk.

The bank’s chief executive Adnan Chilwan said on Wednesday during a conference call to discuss the lender’s fourth-quarter results that Dubai Islamic Bank was considering capital raising options in 2018, including a rights issue and an Islamic bond.

A spokeswoman at the bank declined to comment on the sukuk plans.

In February last year, the bank issued a $1 billion five-year sukuk which was arranged by a group of nine banks comprising Bank ABC, Dubai Islamic Bank itself, Emirates NBD Capital, HSBC, KFH Capital, Maybank Investment Bank, National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered.

The issuance was part of a $5 billion sukuk programme. Dubai Islamic Bank is rated A3 by Moody’s and A by Fitch.

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