DUBAI, UAE: Dubai Islamic Bank PJSC (DIB), rated A3 by Moody’s and A by Fitch efficiently priced its inaugural Sustainable Sukuk – a landmark USD 750 million 5-year senior issue with a revenue rate of 5.493% per annum representing a unfold of 155bps over 5-Year US Treasuries.
The Sukuk was issued in line with DIB’s Sustainable Finance Framework which was created to facilitate financing of inexperienced and social initiatives and projects. This deal achieved a number of landmarks because the first-ever Sustainable Sukuk from a UAE Financial Institution and the largest issue size (USD 750 million) inside the worldwide capital markets from a GCC financial institution since February 2022.
This deal as soon as once more demonstrated DIB’s management in Islamic and Sustainable finance, with a longtime and strong investor following from Europe, Asia and the Middle East. The Sukuk was priced after finishing a complete marketing train the place DIB up to date investors on its positive monetary efficiency in addition to its Sustainable Finance Framework. Despite achieving the largest size on a GCC financial institution deal since February 2022, the book was 2.3x oversubscribed.
Dr. Adnan Chilwan, Group Chief Executive Officer, DIB, commented, “We are delighted to have issued our inaugural Sustainable Sukuk today. This deal was very important for DIB given our strong dedication to Sustainable Finance and the UAE’s Net Zero agenda and the Dubai Clean Energy Strategy. I was particularly happy with the investor response which enabled us to issue a bigger size (USD 750 million) well inside our pricing parameters and the success of this transaction continues to spotlight the confidence investors place in DIB. While we could also be the primary UAE financial institution to issue a Sustainable Sukuk, I sincerely belief we have set a precedent right here for different UAE banks to follow.”
The Sukuk is issued under DIB Sukuk Ltd. and is listed on Euronext Dublin and NASDAQ Dubai. Standard Chartered Bank acted as Sole Sustainability Structurer whereas Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, 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.