Nasdaq Dubai welcomes listing of $750 million Sukuk by Dubai Islamic Bank
- 15 Feb 2022
Nasdaq Dubai on Tuesday welcomed the listing of a $750 million Sukuk by Dubai Islamic Bank (DIB). The 5-year new Sukuk issuance is part of Dubai Islamic Bank’s (DIB) $7.5 billion Sukuk Programme.
The UAE’s first Sukuk issuance in 2022 has been priced at a profit rate of 2.74 per cent per annum, 95 basis points over the 5 year US Treasury representing the lowest-ever credit spread on any of DIB’s fixed-rate senior Sukuk issuances.
The issuance was oversubscribed by more than 2.5 times in a clear testament on the bank’s strong credit profile and attractiveness to international and regional fixed-income investors.
The new listing strengthens Dubai capital markets’ status amongst the leading Sukuk listing venues globally with a total value of US$79.19 billion.
Dubai Islamic Bank recorded a 39 per cent year-on-year increase in net profit for 2021, totaling Dhs4.406 billion versus Dhs3.16 billion earned during a year-earlier period.
Last year, operating revenues declined to Dhs9.42 billion versus Dhs9.47 billion in 2020, while operating expense pared by 7 per cent from Dhs2.72 billion to Dhs2.52 billion.
Profit before impairments improved 2 per cent y-o-y to reach Dhs6.89 billion in 2021 compared to Dhs6.74 billion in 2020. Net financing and sukuk investments stood at Dhs228.5 billion compared to Dhs232 billion in 2020.
Total assets equalled Dhs279.1 billion while customer deposits stood at Dhs205.8 billion with CASA (current and saving accounts) increasing by 4.4 per cent to over Dhs90 billion.
Meanwhile, return on assets stood at 1.5 per cent, return on equity at 11.8 per cent while total equity equalled Dhs41.5 billion.
Mohammed Ibrahim Al Shaibani, chairman of Dubai Islamic Bank, said: “Despite the on-going global market uncertainties, the UAE banking sector remains robust with rising profitability and strong capitalization. DIB has successfully navigated through the ongoing economic environment generating a significant 39 per cent y-o-y growth in net profits. · The bank remains on solid ground moving into the new year as we continue to unearth business opportunities in an improving local economic climate to deliver solid returns to all our valued shareholders whilst maintaining the highest standards of governance across the bank.
“Amidst the headwinds that the global economies are still facing, DIB has remained resilient with a remarkable 39 per cent y-o-y growth in profitability. We have built a leaner, agile and overall efficient organisation that is ready to capitalise on any opportunity with maximum insulation from environmental hurdles,” adds Dr Adnan Chilwan group CEO.
“This has allowed us to generate higher profitability despite a low rate environment and large repayments that kept dampened the earning assets growth. Cost management over the years has remained a key strength for the bank. Our ESG roadmap is set to unlock further efficiencies within the business as we integrate sustainability and climate risk into our operating models with the aim to ensure that the bank is safeguarded against the biggest environmental risks that are impacting the global economies today.”
