Dubai Islamic Bank prices $750m senior sukuk

Dubai Islamic Bank (DIB) has successfully priced a $750m five-year sukuk issue with a profit rate of 2.74 per cent per annum.

Despite investor concerns around the global interest rate environment, DIB has priced its sukuk with no new issue premium. The sukuk was priced after completing a comprehensive marketing exercise where DIB updated investors on its financial performance during the last year. Investor demand was strong with an order book that was more than 2.5 times oversubscribed.

Dr Adnan Chilwan, group CEO – DIB, said: “Final pricing at 95 basis points over the 5-Year US Treasury represents the lowest-ever credit spread on any of our fixed-rate senior sukuk issuances – an achievement all the more noteworthy given the current volatile state of markets. We are very pleased with the outcome of our issuance which is expected to set a precedent for other Islamic banks to follow.”

The sukuk will be listed on Euronext Dublin and Nasdaq Dubai.

Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, KFH Capital, HSBC, Sharjah Islamic Bank, Standard Chartered Bank and The Islamic Corporation for the Development of the Private Sector acted as joint lead managers and bookrunners on the transaction.

In other news, DIB recently reported its profit jumped 33 per cent in 2021 to Dhs4.4bn. The bank is is also identifying new countries where it might expand next. Egypt, Saudi Arabia and Turkey are on the bank’s radar. With operations already in place in Pakistan, Indonesia and Kenya, DIB is also actively exploring opportunities to grow in these three markets.

Read: Dubai Islamic Bank targets growth, scouts out deals