Dubai Islamic Bank Achieves Milestone With $1 Billion Sustainable Sukuk Issuance

Dubai Islamic Bank PJSC (DIB), a leading financial institution with ratings of A3 by Moody's and A by Fitch, has successfully launched its third Sustainable Sukuk, marking a significant milestone in the realm of Islamic Sustainable Finance. The USD 1 billion 5-year senior issue comes with a profit rate of 5.243% per annum, setting a record for the lowest credit spread achieved by DIB at 95bps over 5-Year US Treasuries. This achievement not only underscores DIB's commitment to sustainable finance but also positions it as a pioneer among Middle East Financial Institutions, maintaining a credit spread inside UST +100bps for a Senior issuance.

The Sukuk aligns with DIB’s Sustainable Finance Framework, aimed at supporting green and social initiatives alongside other ESG projects. This issuance, the largest Sustainable offering by a Middle East Financial Institution in nearly a year, attracted a strong investor following from Europe, Asia, and the Middle East. The bank's leadership in Islamic Sustainable Finance was further demonstrated through a 2.5x subscription rate, indicating the robust appeal of DIB's financial health and sustainability narrative among regional and global investors.

Dr. Adnan Chilwan, Group Chief Executive Officer at DIB, expressed his delight over the successful issuance, highlighting it as a testament to DIB's unwavering dedication to ESG principles. This commitment is in line with the UAE’s Net Zero agenda and the Dubai Clean Energy Strategy. Despite a crowded market environment, the issuance saw orders exceeding $2.5 billion, allowing for a larger size issue within the bank's pricing parameters. Dr. Chilwan extended his gratitude towards investors for their continued trust and confidence in DIB.

The Sukuk is issued under DIB Sukuk Ltd. and has been listed on Euronext Dublin and NASDAQ Dubai, ensuring global visibility and accessibility for investors. The transaction was facilitated by Standard Chartered Bank as Sole Sustainability Structurer and Joint Lead Manager. Other Joint Lead Managers included Al Rajhi Capital, Bank ABC, Dubai Islamic Bank itself, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, J.P. Morgan, KFH Capital, Mashreq, and Sharjah Islamic Bank.

This landmark issuance not only reinforces DIB's position as a leader in Islamic finance but also reflects the growing importance of sustainable investment solutions in the global financial landscape. Through such initiatives, DIB continues to contribute significantly to the development of sustainable finance practices in the Middle East and beyond.

With inputs from WAM