DIB raises $1bn for ESG projects with 3rd sustainable sukuk

Image: WAM

Dubai Islamic Bank (DIB) has achieved a significant milestone in the sustainable finance landscape with the successful issuance of its third sustainable sukuk.

The bank’s second sukuk was issued on February 13, 2023, following its inaugural sustainability sukuk – a landmark US$750m 5-year senior issue announced on November 22, 2022.

The third sukuk aligns with DIB’s Sustainable Finance Framework, supporting green and social initiatives, and supports the UAE’s Net Zero and clean energy goals.

Dr Adnan Chilwan, DIB group CEO: said: “We are delighted with the success of our third sustainable sukuk, demonstrating our unwavering commitment to ESG and exceeding expectations in a challenging market.”

Dr Chilwan added that despite a crowded market, the $1bn, five-year senior issuance received an overwhelming investor response, with orders exceeding $2.5bn, allowing the bank to comfortably increase the issuance size.

Milestone sukuk by DIB

The sukuk marks the lowest-ever credit spread achieved by DIB and the largest sustainable issuance by a Middle Eastern financial institution in nearly a year.

The issuance attracted investors from Europe, Asia, and the Middle East, showcasing the bank’s strong financial performance and commitment to ESG principles.

The sukuk is listed on Euronext Dublin and NASDAQ Dubai.

Standard Chartered Bank acted as the sole sustainability structurer and joint lead manager, alongside other prominent financial institutions.