The largest senior unsecured Sukuk issuance globally by a financial institution with a strong order book of USD 2.2 billion

Dubai, UAE; February 8, 2017:  On Tuesday, 7th February 2017, Dubai Islamic Bank announced the successful pricing of the largest senior Sukuk issuance by a financial institution globally. The US$ 1 Billion Sukuk was issued with a 5 year tenor, maturing on 14th February 2022. The issuance under DIB’s USD 5 billion Sukuk Programme carries a profit rate of 3.664% reflecting the strong demand and confidence which global investors have in the UAE’s largest Islamic bank.
This landmark RegS transaction was executed following investor meetings in Asia last year and a deal related roadshow in London on 6th February 2017. The issuance received more than 120 orders from a diverse investor base as part of around USD 2.2 billion order book. The instrument will carry a dual listing on the Irish Stock Exchange and Nasdaq Dubai.

Initial price thoughts of MS+185bps area were further tightened following the strong demand generated for the transaction. The issuance was subsequently priced at a profit rate of 3.664% (MS+170bps spread), being at the tightest end of price guidance, representing solid demand for DIB’s paper and the investor interest in Sukuk issuances.

Substantially oversubscribed, the order book was driven by significant interest from across the globe, with the varied investor type depicting the strong appetite for DIB credit spanning a broad spectrum of global investors.

Dr. Adnan Chilwan, Group Chief Executive Officer of Dubai Islamic Bank, commented “This deal represents the largest senior Sukuk issued by a financial institution globally. It is the first time this year that DIB has accessed the global capital markets and the overwhelming demand from investors has enabled us to price inside DIB’s current yield curve, showcasing the massive investor interest for DIB paper in the market.”

He further added: “Over the recent past, we have continuously engaged with the global investor community adopting an extremely transparent and open approach to imparting updated information to the market. The success of this deal is a testament to DIB’s standing with investors across the globe and the confidence they place in the management team to deliver on the strategic agenda and plans of the bank.”

Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, HSBC, KFH Capital, Maybank Investment Bank Berhad, National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers and Joint Bookrunners on the offering.