DIB launches $1b Sukuk

Dubai

Dubai Islamic Bank has launched a five-year $1 billion Sukuk due to mature in February 2023, the bank announced on Wednesday. The issuance, which emanates from the bank’s $5 billion Sukuk programme, carried a profit rate of 3.65% and marks the first dollar-benchmarked Sukuk transaction from the GCC in 2018. The RegS transaction was executed following an investor meeting in Asia last year and a deal-related roadshow in London on January 29, 2018. A total of 120 orders were received as part of a $1.83 billion order book – nearly 2 times oversubscription. The instrument will carry a dual listing on the Irish Stock Exchange and Nasdaq Dubai. Initial price thoughts of MS+130bps were released on the morning of January 30, with a final price guidance at MS+115bps. The issuance’s final price guidance with a profit rate of 3.625 percent came in at the tightest end of price guidance, which the bank said was a reflection of solid demand. “We are delighted with our successful return to the market with this landmark Sukuk issuance of $1 billion”, said Dr. Adnan Chilwan. Group CEO DIB. “This is the second time that DIB has raised a billion dollar senior Sukuk in as many years effectively leading with the first deal of 2018 and re-opening the market in the GCC.—Arabia Business

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