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12 April 2024

DIB rings market-opening bell to celebrate listing $750m Sukuk on Nasdaq Dubai

By Wam

Dubai Islamic Bank, DIB, rang the market-opening bell today to celebrate the listing of a US$750 million Sukuk on Nasdaq Dubai.

The Sukuk was 4.9 times oversubscribed with a profit rate of 6.25 per cent per annum, with nearly 40% of investor interest coming from outside the Middle East. As a perpetual non-call 6-year Sukuk, it was the first hybrid capital issuance from the GCC in 2019.

DIB is the leading UAE-based Sukuk issuer by value on the exchange with a total of US$6 billion from seven instruments including the latest listing.

Dr. Adnan Chilwan, Group Chief Executive of DIB, said, "The high subscription rate for our latest Sukuk demonstrates strong global investor confidence in DIB’s performance and strategy. We are delighted that our Sukuk was able to achieve the lowest pricing at 6.25 per cent of any Basel III compliant AT1 instruments issued under the new capital guidelines from the UAE. Our listing on Nasdaq Dubai provides our issuance with a well-regulated platform that has close links to regional and global investors. We will maintain our policy of close engagement with the investor community to inform them of our positive financial performance and plans."

Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said, "Our successful collaboration with DIB is a powerful example of the leading role played by Dubai institutions in Islamic finance. We are committed to supporting Dubai’s growth as the global Capital of the Islamic Economy, under the initiative launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai."

The total value of all Sukuk listed on Dubai’s exchanges has now reached $61.14 billion, the largest amount of any listing centre in the world.

Hamed Ali, Chief Executive of Nasdaq Dubai, said, "DIB’s role as a major issuer of Sukuk reflects the bank’s expertise and longstanding experience in many aspects of Islamic finance across the UAE and beyond. We look forward to further strengthening our collaboration with DIB as we expand our activities in Sharia’a-compliant capital markets for the benefit of issuers and investors."

DIB’s $750 million Sukuk listed on Nasdaq Dubai on January 22, 2019. Allocation was 62 per cent to Middle East investors, 19 per cent to Europe, 18 per cent to Asia and one per cent to US offshore.