Dubai Islamic Bank successfully prices $750mln inaugural Sustainable Sukuk

Dubai Islamic Bank successfully prices $750mln inaugural Sustainable Sukuk

Dubai: Dubai Islamic Bank PJSC (“DIB”), rated A3 by Moody's and A by Fitch successfully priced its inaugural Sustainable Sukuk – a landmark USD 750 million 5-year senior issue with a profit rate of 5.493% per annum representing a spread of 155bps 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 as the first-ever Sustainable Sukuk from a UAE Financial Institution and the largest issue size (USD 750 million) in the international capital markets from a GCC bank since February 2022.

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. Despite achieving the largest size on a GCC bank deal since February 2022, the book was 2.3x oversubscribed.

Dr. Adnan Chilwan, Group Chief Executive Officer, DIB, commented, “We are delighted to have issued our inaugural Sustainable Sukuk today. This deal was very important for DIB