DIB successfully closes landmark US$1 bn Sukuk

DUBAI: Dubai Islamic Bank PJSC (“DIB”), rated A3 by Moody’s and A by Fitch (both stable), successfully closed a USD 1 billion long 5-year Sukuk with a profit rate of 2.95 percent per annum, which is equivalent to 245bps over the equivalent tenor Mid Swap Rate.

DIB’s $1 billion Sukuk is a landmark transaction as it is the first public benchmark Sukuk from a regional financial institution after the COVID-19 market disruption with the last Sukuk issuance from GCC being in February 2020. As a leading bank, DIB has in effect reopened the international Islamic capital markets for FI issuers from the UAE in the post COVID-19 environment.

The deal was priced intraday after completing a global investor call, which was attended by several local, regional and international investors.

The Sukuk attracted more than 170 high-quality investors reaffirming their commitment to UAE and DIB in particular. The success of DIB’s offering can be gauged by the substantial international interest in the Sukuk as the orderbook rose to over USD 4.5 bln – with nearly 50% emanating from outside MENA.

Dr. Adnan Chilwan, the Group Chief Executive Officer, DIB, commented, “Despite the challenging global environment due to the COVID-19 pandemic, we are grateful for the positive response from the global investor community. 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.***