Emirates Islamic Successfully Issues US$750 Million Senior Unsecured Sukuk Amid Strong Investor Demand

Emirates Islamic successfully launched a US$750 million Senior Unsecured Sukuk on 18th March 2025. The issuance attracted significant interest, with orders exceeding $1.6 billion, leading to a 2.1 times oversubscription. This strong demand enabled the bank to reduce the spread by 30 basis points from initial pricing thoughts to 95 basis points over 5-Year US Treasuries, resulting in a coupon rate of 5.059 percent annually.

The Sukuk issuance was well received globally, with regional investors acquiring 80 percent and international investors taking the remaining 20 percent. Over 100 investors showed interest, including many new ones purchasing Emirates Islamic's Sukuk for the first time, highlighting the bank's growing recognition worldwide.

Ebrahim Qayed, Head of Treasury and Markets, noted the exceptional market response to their latest Sukuk issuance. He stated, "Concluding two sizable deals of $750 million each in two consecutive years is a testimony of the global market's growing appetite for investment opportunities from Emirates Islamic." This reflects the increasing appeal of Emirates Islamic's offerings in global markets.

Farid AlMulla, Chief Executive Officer at Emirates Islamic, remarked on this achievement: "This milestone emphasises the increasing recognition of Emirates Islamic among the global investor community. Islamic Finance continues to see strong growth while delivering increasingly sophisticated products and structures." His comments underscore the bank's expanding influence in Islamic finance.

Mohammad Kamran Wajid, Deputy Chief Executive Officer, expressed pride in concluding another Sukuk as part of Emirates Islamic's growth journey. He said it aligns with their vision to be an innovative Shariah-compliant bank for counterparties, customers, people, and communities. This strategic direction is central to their ongoing development.

The issuance was managed by several key financial institutions acting as Joint Lead Managers: Emirates NBD Capital, HSBC, Mashreqbank, Dubai Islamic Bank, Standard Chartered Bank, and Sharjah Islamic Bank. Their involvement was crucial in facilitating this successful transaction.

This successful Sukuk issuance highlights Emirates Islamic's growing stature in global finance. The strong investor interest demonstrates confidence in their offerings and strategy. As they continue to innovate within Shariah-compliant banking, they are poised for further growth and recognition worldwide.

With inputs from WAM