Dubai Islamic Bank has successfully priced its $750 million five-year senior sukuk, taking advantage of global interest in Islamic bonds. The bank is the largest Islamic lender in the UAE.
The debt sale, a first in the UAE this year, attracted huge investor interest and was more than 2.5 times oversubscribed, DIB said in a statement to the Dubai Financial Market (DFM).
The bonds were priced at 95 basis points with a profit rate of 2.74 percent. Listed on Euronext Dublin and Nasdaq Dubai, the sukuk has the lowest-ever credit spread on any of DIB’s fixed-rate senior issuances, according to the lender.
“We are pleased with the outcome of our issuance which is expected to set a precedent for other Islamic banks to follow,” said Adnan Chilwan, Group CEO of DIB.
Several banks, including Bank ABC, Emirates NBD Capital, DIB, First Abu Dhabi Bank, KHF Capital, HSBC, Sharjah Islamic Bank, Standard Chartered Bank and The Islamic Corporation for the Development of the Private Sector, acted as joint lead managers and bookrunners for the debt sale.