Dubai Islamic Bank lists $1bn sukuk on Nasdaq Dubai

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, rang the market-opening bell at the Nasdaq Dubai on Tuesday, November 24, to mark its listing of a one $1bn sukuk on the exchange.

The sukuk achieved a strong 5.7 times subscription rate, and attracted over 150 investors from around the world.

The profit rate of 4.625 per cent per annum is the lowest yield achieved by any bank globally on an Additional Tier 1 Sukuk issue.

DIB is now the highest UAE-based sukuk issuer by value on Nasdaq Dubai with a total of $7.3bn, including this latest $1bn listing.

“DIB’s success in this landmark transaction that carries the lowest ever yield achieved by any bank globally on an AT1 Sukuk issue and is the only AT1 Sukuk from the GCC in 2020, is a testament to the bank’s strong credit profile and standing with international and regional investors,” said Dr. Adnan Chilwan, group CEO of DIB.

Today Nasdaq Dubai welcomes Dubai Islamic Bank’s USD one billion #Sukuk listing. @DIBtoday is the largest #UAE Sukuk issuer on Nasdaq Dubai, with their latest achievement bringing their total to USD 7.3 billion. Congratulations! https://t.co/PXcPhoYzxP pic.twitter.com/hHC9ByHZ14

— Nasdaq Dubai (@NasdaqDubai) November 24, 2020

DIB’s listed its $1bn sukuk on Nasdaq Dubai on November 19, 2020. This debt issuance was DIB’s first post the completion of its integration with Noor Bank.

DIB’s latest sukuk brings raises the total value of sukuk listed in Dubai to $75.3bn, making the emirate one of the largest Islamic bond listing centres in the world by value.

In 2020 alone, the value of new debt listings on Nasdaq Dubai has reached a record annual high of $18.4bn, up 4 per cent from the previous record of $17.7bn over the course of the entire year in 2019.

Global sukuk issuance reached $130.5bn in the first nine months of 2020, up 2.5 per cent from $127.3bn in the same period of 2019, according to Refinitiv.

The State of the Global Islamic Economy Report 2020/2021 estimates that the value of all Islamic finance assets will increase by 28 per cent from $2.88 trillion in 2019 to $3.69 trillion by 2024.

Dubai Islamic Bank has posted a net profit of Dhs2.1bn for H1 2020, 23 per cent lower against Dhs2.7bn in H1 2019.

Read: Dubai Islamic Bank posts 23% dip in net profit for H1 2020

Its total income of Dhs6.8bn for the first half of 2020 also fell 2 per cent from Dhs6.98bn in H1 2019.

However, the net financing and sukuk investments increased to Dhs237.1bn in H1 2020 from Dhs184.2bn at the end of 2019, posting an increase of 29 per cent.