Dubai, UAE—UAE’s biggest Sharia-compliant bank Dubai Islamic Bank has raised $1 billion from its second sustainable sukuk, a 5.5-year issue with a profit rate of 4.80 percent per annum.
The sukuk was oversubscribed three times, largest issuance by a Middle East financial institution in the international capital markets since June 2021 and the largest-ever sustainable issuance by a Middle East Financial Institution.
The bank had raised $750 million through the sale of its debut sustainable sukuk in November.
“The success of DIB’s inaugural sukuk in 2022 strongly reflected the market’s faith in the franchise and the reputation the bank enjoys in the local and international capital markets. The investor response for this latest issuance was overwhelming with more than US$3bn of orders allowing us to issue a larger size well within our pricing parameters,” said Adnan Chilwan, Group Chief Executive Officer.
The Sukuk was issued in line with DIB’s Sustainable Finance Framework, which was created to facilitate financing of green and social initiatives and projects.