Dubai Islamic Bank issues $1bn senior sukuk
DUBAI, February 8, 2017
Dubai Islamic Bank has announced the successful pricing of the largest senior sukuk issuance by a financial institution globally. The $1 billion sukuk was issued with a five-year tenor, maturing on February 14, 2022.
The issuance under DIB’s $5 billion Sukuk Programme carries a profit rate of 3.664 per cent reflecting the strong demand and confidence which global investors have in the UAE’s largest Islamic bank.
This landmark RegS transaction was executed following investor meetings in Asia last year and a deal related roadshow in London on February 6, 2017. The issuance received more than 120 orders from a diverse investor base as part of around $2.2 billion order book. The instrument will carry a dual listing on the Irish Stock Exchange and Nasdaq Dubai.
Initial price thoughts of MS+185bps area were further tightened following the strong demand generated for the transaction. The issuance was subsequently priced at a profit rate of 3.664 per cent (MS+170bps spread), being at the tightest end of price guidance, representing solid demand for DIB’s paper and the investor interest in Sukuk issuances.
Substantially oversubscribed, the order book was driven by significant interest from across the globe, with the varied investor type depicting the strong appetite for DIB credit spanning a broad spectrum of global investors, the bank said.
Dr Adnan Chilwan, group chief executive officer of Dubai Islamic Bank, said: “This deal represents the largest senior sukuk issued by a financial institution globally. It is the first time this year that DIB has accessed the global capital markets and the overwhelming demand from investors has enabled us to price inside DIB’s current yield curve, showcasing the massive investor interest for DIB paper in the market.”
He further added: “Over the recent past, we have continuously engaged with the global investor community adopting an extremely transparent and open approach to imparting updated information to the market. The success of this deal is a testament to DIB’s standing with investors across the globe and the confidence they place in the management team to deliver on the strategic agenda and plans of the bank.”
Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, HSBC, KFH Capital, Maybank Investment Bank Berhad, National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers and Joint Bookrunners on the offering. - TradeArabia News Service