Dubai Islamic Bank prices $1 billion sustainable sukuk

Dubai Islamic Bank prices $1 billion sustainable sukuk

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 issued in line with DIB’s sustainable finance framework, which was created to facilitate financing of green and social initiatives and projects. — Supplied photos

Published: Mon 13 Feb 2023, 3:14 PM

Dubai Islamic Bank (DIB) has 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 102.4 basis points over five-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.

Dr Adnan Chilwan, group chief executive officer, DIB, said the success of DIB’s inaugural sukuk in 2022 strongly reflected the market’s faith