DIB successfully prices $1 billion Sustainable Sukuk

Dubai Islamic Bank (DIB), rated A3 by Moody’s and A by Fitch successfully priced its second Sustainable Sukuk – a landmark $1 billion 5.5-year senior issue with a profit rate of 4.80 per cent per annum representing a spread of 102.4bps over 5-Year US Treasuries.

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. This deal achieved several landmarks including the 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.

This deal once again demonstrated DIB’s leadership in Islamic and Sustainable finance, with an established and strong investor following from Europe, Asia and the Middle East. The Sukuk was priced after completing a comprehensive marketing exercise where DIB updated investors on its positive financial performance as well as its Sustainable Finance Framework. The response from investors was overwhelming and despite issuing a larger size ($1 billion), DIB achieved a 3x oversubscription - which itself was the largest book size seen for a GCC bank in over a year.

Dr Adnan Chilwan, Group Chief Executive Officer, DIB, commented: “Driven by our detailed and meticulously crafted balanced growth strategy as well as the bank’s commitment towards the Sustainability agenda of the UAE and the larger “Net Zero by 2050” goal of the nation, we are delighted to announce the issuance of our second Sustainable Sukuk today, the largest-ever by a Middle East Financial Institution.