Dubai – Mubasher: Dubai Islamic Bank (DIB) has issued its $750 million inaugural sustainable Sukuk, which was announced last February, according to a press release.

The issuance comes in line with DIB’s sustainable finance framework which aims to facilitate funding of green and social projects. The deal marks the biggest transaction by a Gulf lender since February 2022.

The five-year Islamic bond was oversubscribed 2.5 times once first debuted, with an annual profit rate of 5.493%, equivalent to a spread of 155 basis points (bps) over 5-Year US Treasuries.

Issued under DIB Sukuk Ltd., the Sukuk is listed on Euronext Dublin and NASDAQ Dubai.

Arab Banking Corporation (Bank ABC), DIB, Emirates NBD Capital, First Abu Dhabi Bank (FAB), HSBC, KFH Capital, and Sharjah Islamic Bank (SIB) acted as the joint lead managers and bookrunners on the transaction, along with Standard Chartered Bank and the Islamic Corporation for the Development of the Private Sector. Meanwhile, Standard Chartered Bank is the sole sustainability structurer.

Adnan Chilwan, Group CEO of DIB, commented: “This deal was very important for DIB given our strong commitment to sustainable finance and the UAE’s Net Zero agenda and the Dubai Clean Energy Strategy.”

Chilwan added: “I was particularly pleased with the investor response which enabled us to issue a larger size ($750 million) well within our pricing parameters and the success of this transaction continues to highlight the confidence investors place in DIB.”

In the first nine months (9M) of 2022, DIB registered net profits attributable to the shareholders worth AED 4.04 billion, higher by 34% year-on-year (YoY) than AED 3.05 billion.