2024-02-28 06:48:24
Dubai Islamic Bank
Dubai Islamic Bank announced the issuance of sustainable sukuks worth one billion dollars, with a maturity period of five years, with a profit rate of 5.243 percent annually, representing a margin of 95 basis points over US Treasury bond yields for more than five years.
The bank stated that these sukuks were issued in accordance with Dubai Islamic Bank’s sustainable financing framework, which was developed to facilitate financing related to environmental, social and governance initiatives and projects.
The issue pricing reflects the lowest credit spread DIB has ever achieved, making the bank one of the select few financial institutions in the Middle East to remain within 100 basis points of a major issue. This $1 billion issuance is the largest sustainable issuance of its kind by a financial institution in the Middle East in nearly a year, according to the bank’s statement.
The issuance witnessed great demand and interest from investors from Europe, Asia and the Middle East. The sukuk were priced following the completion of a comprehensive marketing campaign that included Singapore and London, during which Dubai Islamic Bank informed investors of its financial performance and the sustainable financing framework it adopts as part of its strategy and plans in the field of environmental, social and institutional governance.
The subscription witnessed a large response from investors, as despite the increase in the size of the issue, the subscription was covered by more than two and a half times, in a clear indication of the strength of the bank’s financial performance and the impression left by the bank’s sustainable journey on the investor base at the regional and international levels.
Adnan Chilwan, CEO of Dubai Islamic Bank Group, said: “We are pleased to announce the successful issuance of our third sustainable sukuk, an achievement that reflects our firm commitment to the principles of environmental, social and governance, and is in line with the sustainability agenda and achieving net zero emissions in the UAE, reaching the country’s ultimate goal in this regard.” The field of achieving climate neutrality and the Dubai Clean Energy Strategy.”
He added, “Despite the competitive environment of the current issuance market, we succeeded in accelerating the implementation of the issuance as a result of the strong demand from investors, as demand exceeded 2.5 billion US dollars, which allowed us to increase the size of the issuance within the target price range.”
The Sukuk were issued under the Dubai Islamic Bank Limited Sukuk Issuance Programme, and listed on both the Euronext Dublin Stock Exchange and Nasdaq Dubai.
Standard Chartered Bank is participating as the sole sustainability regulator and joint lead manager, and Al Rajhi Capital, ABC Bank (Arab Banking Corporation), Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank and GB are also mandated. Morgan, KFH Capital, Mashreq Bank, and Sharjah Islamic Bank, to act as joint lead issue managers and joint bookrunners for these sukuks.
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