Dubai Islamic Bank prices US$ 750 million 2.921% Fixed Rate Trust Certificates

Press release
Published June 7th, 2015 - 08:36 GMT
Dr. Adnan Chilwan, Chief Executive Officer of Dubai Islamic Bank
Dr. Adnan Chilwan, Chief Executive Officer of Dubai Islamic Bank

Dubai Islamic Bank has successfully priced a US $750 Million Sukuk issuance maturing on 3rd June 2020. The issuance from DIB’s USD 2.5 billion Sukuk Programme carries a profit rate of 2.921% reflecting the strong demand for the credit and confidence investors have in the world’s first Islamic bank.

This landmark RegS transaction was executed following a global roadshow covering key financial centers (London, Singapore and Kuala Lumpur). The issuance ultimately received more than 85 orders amounting to nearly USD 2 billion on the back of insatiable demand from a diverse investor base. The instrument will carry a dual listing on the Irish Stock Exchange and NASDAQ Dubai.

Initial price thoughts of MS+140bps area were released at 06:00 AM London time on Wednesday 27th May 2015 to investors. The early guidance was further tightened following the strong demand generated for the transaction. With a final outcome at MS+130bps +/-5bps, the issuance was subsequently priced at a profit rate of 2.921% (MS+125bps spread), this being notably inside DIB’s existing Sukuk yield curve, representing a strong appetite for DIB’s paper and investor interest in Sukuk issuances.

The order book was driven by strong demand across the globe, and given the fact that it was oversubscribed nearly three times, DIB continued to support the investor base across Middle East, GCC, Asia, Europe and other regions. The varied investor type shows the demand for DIB credit across a broad spectrum global investors with the participation coming from banks, fund managers, private banks, supranationals, pension funds and insurance companies, amongst others.

Dr. Adnan Chilwan, Chief Executive Officer of Dubai Islamic Bank, commented “This is the second time this year that DIB has accessed the global capital market with a successful result. The overwhelming demand from investors has enabled us to price inside DIB’s current yield curve, showcasing investor interest and hunger 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 critical information to the capital markets and allowing our stakeholders to make far more accurate and informed decisions about the Bank. The success of this deal is a testament to DIB’s standing with investors across the globe and the faith and confidence they place in the management team to deliver on the strategic agenda and plans communicated to the market.”

Dubai Islamic Bank, First Gulf Bank, HSBC, Maybank, National Bank of Abu Dhabi, and Standard Chartered Bank acted as Joint Lead Managers on the offering.

Arab Banking Corporation, Abu Dhabi Islamic Bank, Sharjah Islamic Bank and Union National Bank acted as Co-lead Managers on the offering.

Background Information

Dubai Islamic Bank

Since its formation in 1975 as the world’s first full-service Islamic bank, Dubai Islamic Bank has established itself as the undisputed leader in its field, setting the standards for others to follow as the trend towards Islamic banking gathers momentum in the Arab world and internationally.

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