DIB becomes the first-ever sustainable Sukuk issuer in the UAE
The new listing raised the total value of DIB’s Sukuk on Nasdaq Dubai to US$ 7.8 billion
ESG-linked bonds and Sukuk listings on the region’s international financial exchange increased to US$ 16.825 billion
Dubai, 5 December 2022: Dubai Islamic Bank (DIB), the largest Islamic Bank in the UAE, rang the market-opening bell today to celebrate the listing of its inaugural sustainable Sukuk with a value of US$ 750 million on Nasdaq Dubai. The Sukuk is the first-ever sustainable Sukuk from a UAE entity and was issued in line with DIB’s Sustainable Finance Framework, which was created to facilitate the financing of green and social initiatives and projects. DIB has successfully priced the 5-year senior issuance with a profit rate of 5.493% per annum representing a spread of 155bps over 5-Year US Treasuries.
The A3-rated bank by Moody's and A by Fitch issued the new Sukuk under its US$ 7.5 billion Sukuk Program. It has raised the total value of DIB’s Sukuk listed on Nasdaq Dubai under this Program to US$ 5.55 billion and the total value of all DIB Sukuk listed on the region’s international financial exchange to US$ 7.8 billion. The new listing has driven the total value of ESG-linked bonds and Sukuk listed on Nasdaq Dubai to US$ 16.825 billion.
Dr. Adnan Chilwan, Group CEO of DIB, said: “We are delighted to accomplish this deal that has achieved several landmarks as the first-ever sustainable Sukuk from a UAE entity and the largest issue size in the international capital markets from a GCC bank since February 2022. The strong demand from investors demonstrates the market’s confidence in DIB’s growth strategy and our active leadership role in empowering economic growth. Our listing on Nasdaq Dubai supports our links with investors around the world through the high visibility and well-regulated platform that the exchange provides."
Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, said: “We are delighted to welcome the issuance and listing of DIB’s new Sukuk as a step forward in Nasdaq Dubai’s endeavor to provide market participants with a world-class ecosystem that supports the growth of sustainable finance in Dubai and beyond. We are committed to further expanding our services in line with the requirements of issuers and investors and particularly supporting Dubai and the UAE’s strategies pertaining to sustainable finance and ESG-linked market activities.”
The new listing was admitted on 30 November 2022, strengthening Dubai capital markets’ status amongst the leading Sukuk listing venues globally with a total value of US$ 80.287 billion.