Dubai Islamic Bank announced its success in issuing tier 1 sukuk for capital worth $ 500 million, with no option to redeem them until after five and a half years, at a profit rate of 3.375% annually.
A statement issued yesterday stated that this deal came at the lowest price offered by any Gulf bank (traditional or Islamic), on additional US dollar denominated sukuk from the first tier, globally, stressing that despite the fluctuations in the credit markets, during the past month Due to the high rates of US Treasury bonds, achieving this success in the current deal is evidence of the bank’s strong credit standing and its prestigious position among international and regional investors.
According to the statement, the Sukuk subscription witnessed a coverage rate of about 5.6 times the subscription in this issue, and the order book reached a peak of $ 2.8 billion, which is evidence of investor confidence and their commitment to the UAE, and Dubai Islamic Bank in particular, rated A3 by the agency “ Moody’s and A by Fitch.
The CEO of Dubai Islamic Bank Group, Dr. Adnan Chilwan, said that “due to the relative volatility that the markets witnessed during the past few weeks, due to the rapid increase in US Treasury bonds rates, the successful implementation of this issuance at the lowest price on additional dollar-denominated sukuk from the first tranche, It is an achievement that we are all proud of, ”pointing to the strong response of investors, which is a clear indication of the confidence of global markets in the position of the bank.
The statement pointed out that these sukuk were listed on the Euronext Dublin Stock Exchange and Nasdaq Dubai. Dubai Islamic Bank, Emirates NBD Capital, and the banks: First Abu Dhabi, HSBC, and “Standard Chartered”, the role of the co-principal issuance managers, and the joint subscription book managers for these sukuk.
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