Dubai
Dubai Islamic Bank PJSC (“DIB”), rated A3 by Moody’s and A by Fitch successfully priced a landmark USD 500 million Perpetual Non-Call 5.5yrs Additional Tier 1 Sukuk with a profit rate of 3.375% per annum.
This transaction represents the lowest ever pricing achieved by a GCC bank (both conventional and Islamic) on an Additional Tier 1 instrument and the lowest ever on a USD AT1 Sukuk globally.
Despite the volatility witnessed in credit markets during the past month on account of US Treasury rates, achieving this landmark success in the current scenario is testament to the bank’s strong credit profile and standing with international and regional investors.
The deal was priced intraday after completing investor calls, which were attended by several local, regional and international investors.
Despite the record low yield, the Sukuk was 5.6x oversubscribed with an orderbook that peaked at USD 2.8 billion which is a further testament to investors reaffirming their commitment to UAE and DIB in particular.
Dr. Adnan Chilwan, Group Chief Executive Officer, DIB, commented, “We are very pleased with the outcome of our issuance today.
Given that markets had been fairly volatile during the last several weeks on account of underlying US Treasury rates rising rapidly, successfully executing this issuance at the lowest-ever pricing on a USD AT1 instrument is an achievement we are all proud of. —Zawya News
