Dubai Islamic Bank lists $1bn sukuk on Nasdaq Dubai

Dubai Islamic Bank (DIB) listed a $1bn sukuk on Nasdaq Dubai, underpinning the bank’s measures to support its customers and the larger business community.

The sukuk, listed by the UAE’s largest Islamic bank, was nearly 4.5 times subscribed with a profit rate of 2.95 per cent per annum, Dubai Media Office reported.

Nearly 50 per cent of investor interest poured in from outside the MENA region.

DIB is the leading UAE-based sukuk issuer by value on the exchange with a total of $6bn from seven instruments, inclusive of the latest listing.

Dr. Adnan Chilwan, group chief executive of DIB, said: “Our latest issuance was the first public benchmark sukuk from a regional financial entity following the disruption caused by Covid-19 and its enthusiastic reception by investors demonstrates confidence in DIB’s forward-looking strategy and operations. Given that this deal opened the Islamic capital markets for financial institutions in 2020, it was befitting that it was done so by the first Islamic bank in the world.”

“In line with the effective policies of the UAE leadership, we will continue to support individuals and businesses in the UAE and beyond as the world emerges from the difficulties faced over recent months. The listing on Nasdaq Dubai provides the issuance with close links to regional and global investors from a well regulated platform. Our overall strategy and refreshed tactics are based around greater transparency and governance as we move forward during this global pandemic by forming deeper links with regional and global investors.”

Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, said: “The deep and longstanding relationship between Nasdaq Dubai and DIB will continue to provide important benefits to investors and promote economic well-being in the UAE and overseas. The issuance and listing of DIB’s sukuk reflects the further development of the sukuk market as an effective means of raising capital from regional and global investors.”

“We are delighted to support DIB’s important activities as one of the UAE’s leading banks operating successfully across many areas of Islamic financing. DIB’s expertise, experience and close ties to the business community make the bank an important partner for the exchange as we further increase our commitment to the Sharia’a-compliant capital markets,” added Hamed Ali, chief executive of Nasdaq Dubai.

Dubai is one of the largest centres for sukuk listings worldwide, with a total current listed value of $66.3bn.

Earlier this month, Bahrain’s GFH Financial Group (GFH) listed a $200m sukuk on Nasdaq Dubai.

Read more: Bahrain’s GFH Financial Group lists $200m sukuk on Nasdaq Dubai