PC: Emirates Islamic
The Sukuk issuance strengthens DIB’s position in global Islamic finance and reinforces Nasdaq Dubai’s role as a hub for Sukuk listings.
Nasdaq Dubai has announced the listing of a USD 500 million Sukuk issued by Dubai Islamic Bank, the largest bank in the UAE with Islamic finance. The additional Tier 1 (AT1) Sukuk was priced at a profit rate of 5.25 percent per annum and received “overwhelming investor interest resulting in significant oversubscription.” This is another milestone in DIB’s leadership in the global Islamic finance sector.
This further cements Nasdaq Dubai’s position as a premier global exchange for Sukuk listing. Nasdaq Dubai currently lists a total of USD 93 billion outstanding Sukuk in 102 listings and USD 133 billion in capital market listings. Nasdaq Dubai supports the opportunities present in both Islamic finance and fixed-income products.
The Sukuk had attracted a cross-section of investors such as financial institutions and private banks, fund managers in Europe, Asia and the Middle East. It means increasing the attraction of Islamic financial instruments and also reflects investor confidence in the financial markets of the UAE, while the Sukuk is dual-listed on Nasdaq Dubai and Euronext Dublin.
Dubai Islamic Bank marks the listing by Saeed Wajdi, Chief of Treasury, ringing the bell at Nasdaq Dubai market-opening ceremony. He is accompanied by Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM).
“The successful reception of the listing on Nasdaq Dubai of our USD 500 mn Sukuk is a testament that goes beyond affirming market confidence in Dubai Islamic Bank. It is a robust endorsement of the UAE’s economic resilience and future ambitions. In line with the leadership’s transformative vision, we drive initiatives that strengthen the national economy and position us as a global leader in Islamic finance. This listing amplifies our profile, connects us to a wider spectrum of investors, and utilises Nasdaq Dubai’s well-regulated platform to expand our global reach and elevate our investor relations,” said Group Chief Executive Officer DIB, Dr. Adnan Chilwan.
Nasdaq Dubai and DFM CEO Hamed Ali also said, “We welcome the latest listing of Dubai Islamic Bank’s Sukuk on Nasdaq Dubai, reflecting increasing demand for Islamic finance and growing strength of the UAE capital markets. We will continue to strive to provide an empowering platform that facilitates the issuance and investment of Sukuk, enhancing growth in Islamic finance globally.”
The intra-day Sukuk issuance itself achieved a reset spread of 133.4 basis points over US Treasuries, the lowest recorded for an AT1 instrument since the 2009 financial crisis. Dubai Islamic Bank remains rated A3 with a stable outlook by Moody’s, and A with a stable outlook by Fitch, with an outstanding value of more than USD 9 billion in 11 Sukuk listings on Nasdaq Dubai.
