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% 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. It also clearly points towards investors’ appreciation of the economic measures and policy response of the UAE towards the pandemic”
The Sukuk was issued as a drawdown under DIB’s USD 7.5 billion Trust Certificate Issuance Programme which is listed on Euronext Dublin and NASDAQ Dubai.
Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, The Islamic Corporation for the Development of the Private Sector, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners on this transaction.
About Dubai Islamic Bank:
Established in 1975, Dubai Islamic Bank is the largest Islamic bank in the UAE by assets and a public joint stock company listed on the Dubai Financial Market. Spearheading the evolution of the global Islamic finance industry, DIB is also the world’s first full service Islamic bank and the second largest Islamic bank in the world. With Group assets in excess of USD 75bln and market capitalization of nearly USD 7bln, the group operates with a workforce of more than 9000 employees and around 500 branches in its vast global network across the Middle East, Asia and Africa. Serving over 3 million customers across the Group, DIB offers an increasing range of innovative Shariah compliant products and services to retail, corporate and institutional clients.
In addition to being the first and largest Islamic bank in the UAE, DIB has a significant international presence as a torchbearer in promoting Shari’ah-compliant financial services across a number of markets worldwide. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which is the first Islamic bank in Pakistan to offer Priority & Platinum Banking, as well as the most extensive and innovative portfolio of Alternate Distribution Channels. The launch of Panin Dubai Syariah Bank in Indonesia early in 2017 marks DIB’s first foray in the Far East, the bank owns a nearly 40% stake in the Indonesian bank. Additionally, in May 2017, Dubai Islamic Bank PJSC was given the license by the Central Bank of Kenya (CBK) to operate its subsidiary, DIB Kenya Ltd. DIB has been designated as D-SIB (Domestic Systemically Important Bank) in 2017 and was also recently upgraded by international agencies with regards to the bank’s credit rating indicating robust capital position, improving asset quality and strong profitability.
The Bank’s ultimate goal is to make Islamic finance the norm, rather than an alternative to conventional banking worldwide. DIB has won a range of accolades that are testament to these efforts across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. A clear indication of the bank’s leadership position in the Islamic finance sector, DIB has been named the Best Islamic Bank in the various prestigious ceremonies. Recognizing its outstanding performance amongst the world’s Islamic retail banks, the bank was recently named as the “Strongest Islamic Retail Bank in the World” during the Islamic Retail Banking Awards 2018 and “Bank of the Year 2018 – UAE” by The Banker. Reflective of its leadership in the global Islamic finance industry, DIB has also been recognized with a number of accolades including Banker Middle East Awards, Dubai Service Excellence Scheme, Global Finance, The Banker and Islamic Finance News Awards.
For more information, please visit us at www.dib.ae
© Press Release 2020
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