Dubai Islamic Bank closes landmark $1bn Sukuk

Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE, closed a $1 billion (Dh3.67bn) 5-year sukuk with a profit rate of 2.95 per cent despite a challenging global environment due to the coronavirus pandemic. The sukuk attracted more than 170 investors with the order book rising to over $4.5bn, the lender said in […]

Dubai Islamic Bank (DIB), the largest Sharia-compliant lender in the UAE, closed a $1 billion (Dh3.67bn) 5-year sukuk with a profit rate of 2.95 per cent despite a challenging global environment due to the coronavirus pandemic.

The sukuk attracted more than 170 investors with the order book rising to over $4.5bn, the lender said in a statement on Wednesday.

“With the issuance being subscribed nearly 4.5 times, DIB continues to remain an attractive credit in the capital market space,” Adnan Chilwan, group chief executive of DIB said.

“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.”

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. It is the first public benchmark sukuk issuance from a regional financial institution after the Covid-19 outbreak.

Earlier this year, the Dubai-based lender completed its acquisition of rival Noor Bank to create one of the largest Islamic banks in the world, with more than Dh275bn in assets.