Dubai Islamic Bank (DIB) announced the successful pricing of a USD 1 billion Additional Tier 1 (AT1) Perpetual Non-Call 6-Year Sukuk at a profit rate of 6.250%, reinforcing its position as one of the leading issuers in the global Sukuk market.
According to the bank, the issuance attracted strong demand from regional and international investors despite a challenging geopolitical environment, reflecting confidence in DIB’s credit profile, profitability and capital management framework.
Key highlights:
• USD 1 billion AT1 Perpetual Non-Call 6-Year Sukuk issued
• Final profit rate of 6.250%
• Orderbook peaked at over USD 2.3 billion
• Oversubscribed by 2.3 times
• More than 85 institutional investors participated
• One of the largest GCC AT1 issuances in the recent period
Investor demand allowed DIB to tighten pricing from initial profit rate guidance of 6.625% to a final profit rate of 6.250%. The orderbook grew to USD 1.7 billion shortly after opening before reaching more than USD 2.3 billion.
Geographical allocation of the Sukuk included:
• 83% allocated to investors from the MENA region
• 17% allocated to investors from the UK, Europe and other international markets
By investor type:
• 77% allocated to banks and private banks
• 21% allocated to fund managers
• 2% allocated to insurance companies, pension funds and sovereign wealth funds
Dr. Adnan Chilwan, Group Chief Executive Officer of DIB, stated that the strong outcome reflects continued market confidence in the bank’s financial strength, disciplined capital strategy and resilient credit profile.
The Sukuk will be listed on both Nasdaq Dubai and Euronext Dublin, further expanding DIB’s presence within international capital markets.
Source: Dubai Financial Market (DFM) Disclosure / Dubai Islamic Bank (DIB)
Disclaimer: This post is for informational purposes only and should not be considered investment or financial advice.