DIB Repays $750 million Sukuk

Dubai Islamic Bank (DIB has repaid in full a $750 million five-year Sukuk, which matured on March 22, 2012, from its own resources, the lender said in a statement on Wednesday.

The Sukuk, issued in March 2007, is the only capital market issuance done directly by DIB, and was issued through a special purpose vehicle, DIB Sukuk Company Limited. It was oversubscribed by three times, the bank said.

“The ability to repay from our own resources without the need to refinance is testament to the robust fundamentals we have built over the past years,” Adnan Chilwan, deputy CEO and chief of Consumer and Wholesale Banking, DIB said in the statement. “We will continue to explore potential opportunities to expand our funding sources in the future.”

In February, the bank reported that its net profit for 2011 increased by 25 per cent to Dhs1.01 billion, compared to Dhs806 million in 2010. DIB’s total assets reached Dhs90.59 billion last year, up slightly from Dh89.8 billion a year ago.

Last week, the lender also announced that it would distribute a 12.5 per cent cash dividend for 2011.

Recently, Tamweel a mortgage finance company majority owned by DIB, launched its own $300 million five-year Sukuk.