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Wed 10 Jun 2020 02:10 PM

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Dubai Islamic Bank closes $1bn sukuk

Sukuk attracted more than 170 investors, with order book rising to over $4.5bn

Dubai Islamic Bank closes $1bn sukuk

The sukuk was issued as a drawdown under DIB’s $7.5bn Trust Certificate Issuance Programme which is listed on Euronext Dublin and Nasdaq Dubai.

Dubai Islamic Bank (DIB) has successfully closed a $1 billion five-year sukuk, with a profit rate of 2.95 percent per annum, the equivalent to 245 basis points (bps) over the equivalent tenor Mid Swap Rate.

It marks the first public benchmark sukuk from a regional financial institution after the Covid-19 pandemic market disruption.

The sukuk attracted more than 170 high-quality investors, with the order book rising to over $4.5bn and nearly 50 percent coming from outside the MENA region.

Dr. Adnan Chilwan, group chief executive officer of DIB, said: "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 $7.5bn Trust Certificate Issuance Programme which is listed on Euronext Dublin and Nasdaq Dubai.

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