Nasdaq Dubai Lists $500 Million AT1 Sukuk From Dubai Islamic Bank Amid Strong Investor Demand

Dubai Islamic Bank (DIB) has successfully listed a US$500 million Sukuk on Nasdaq Dubai. This additional Tier 1 (AT1) Sukuk, issued at an annual profit rate of 5.25 percent, saw significant investor interest, leading to substantial oversubscription. This move strengthens DIB's position in the global Islamic finance market and supports its growth plans.

The listing of this Sukuk further establishes Nasdaq Dubai as a key player in the global Sukuk market. With this addition, the total outstanding value of Sukuk on the exchange has reached US$93 billion across 102 listings, contributing to a combined capital market listing value of US$133 billion. The dual listing on Nasdaq Dubai and Euronext Dublin attracted diverse investors from Europe, Asia, and the Middle East.

The issuance drew interest from financial institutions, private banks, and fund managers. This highlights the increasing appeal of Islamic financial instruments and reflects strong investor confidence in the UAE's financial market stability. The transaction was executed intra-day with a reset spread of 133.4 basis points over US Treasuries, marking a record low for an AT1 instrument since 2009.

To mark this significant event, Saeed Wajdi, Chief of Treasury at DIB, participated in a bell-ringing ceremony at Nasdaq Dubai alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market. Dr. Adnan Chilwan, Group CEO of DIB, expressed that the successful reception of their $500 million Sukuk listing signifies more than just market confidence in DIB.

"The successful reception of our $500 million Sukuk listing on Nasdaq Dubai transcends beyond reaffirming market confidence in Dubai Islamic Bank. It signifies a robust endorsement of the UAE's economic resilience and future ambitions," stated Dr. Adnan Chilwan. He emphasized that this aligns with leadership's vision to strengthen the national economy and position the UAE as a leader in Islamic finance.

DIB currently holds an outstanding value exceeding $9 billion through 11 Sukuk listings on Nasdaq Dubai. Rated A3 (Stable) by Moody's and A (Stable) by Fitch, this latest issuance amplifies DIB's profile by connecting with a broader range of investors through Nasdaq Dubai's regulated platform.

Nasdaq Dubai's Commitment to Growth

Hamed Ali commented on the significance of DIB's latest Sukuk listing: "We welcome Dubai Islamic Bank's latest Sukuk listing to Nasdaq Dubai, which underscores the growing demand for Islamic finance and the strength of the UAE's capital markets." He reiterated their commitment to providing a dynamic platform that supports issuers and investors while fostering growth and innovation globally in Islamic finance.

This strategic issuance not only reinforces DIB’s leadership but also enhances its global reach through improved investor relations facilitated by Nasdaq Dubai’s platform.

With inputs from WAM