Dubai Islamic Bank issues $750 mln sukuk

UAE’s largest standalone Islamic bank has just closed a $750 million sukuk.

Dubai Islamic Bank’s 5-year $750 million sukuk sold with a a profit rate of 2.95%, equivalent to 140bps over 5-year mid swaps, the company said in an exchange filing on Monday (Nov 18).

This is the bank’s second $750 million sukuk this year. The first was an additional Tier 1 perpetual non-call 6-year sukuk with a profit rate of 6.25% per annum.

DIB said its latest sukuk attracted orders in excess of $2 billion, representing an oversubscription rate of 2.7 times.

The sukuk was issued as a drawdown under DIB’s $7.5 billion Trust Certificate Issuance Programme that is listed on Euronext Dublin and NASDAQ Dubai.

Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Maybank, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank acted as Joint Lead Managers and Bookrunners on this transaction. The Islamic Corporation for the Development of the Private Sector acted as a Joint Lead Manager (no books) and Kuwait International Bank acted as a Co-manager.

The United Arab Emirates’ largest Islamic bank saw 0.08% increase in net profit to 1.262 billion dirhams ($343.6 million) for the third quarter. Its assets grew to 229.962 billion dirhams, a rise of 2.8% from December 31.

Dubai Islamic Bank is one of four UAE banks considered systemically important by the central bank. The others are First Abu Dhabi Bank, Emirates NBD, and Abu Dhabi Commercial Bank.

In July DIB outlined plans to acquire fellow Shariah-compliant Noor Bank, which would create an Islamic bank of around 275 billion dirhams in assets.

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