Dubai – Mubasher: Dubai Islamic Bank (DIB) managed to close a five-year sukuk issue worth $750 million with a profit rate of 2.95% annually or 140 basis points (bps) during the five-year mid swap rate.
This transaction is the bank’s second foray into the international capital markets in 2019, with the first being a $750 million Additional Tier 1 sukuk priced.
The deal has attracted investors’ attention from across the Middle East, Asia, and Europe, with the order book closing beyond $2 billion, representing an oversubscription rate of 2.7 times, according to a press release on Monday.
“The success of DIB’s Sukuk is a testament to the confidence investors place in the bank’s robust fundamentals, as well as their comfort in the broader Dubai and UAE story. We are extremely pleased with the outcome of this transaction and remain committed to our local and global investors who continue to support our diversified funding strategy,” said the bank’s CEO, Adnan Chilwan.
It is worthy to note that the sukuk was issued as a drawdown under DIB’s $7.5 billion Trust Certificate Issuance Programme, which is listed on Euronext Dublin and NASDAQ Dubai.