Dubai Bank issues MTN worth $5b

Dubai: Dubai Bank, a Dubai Group company, on Thursday announced plans to issue $5 billion (Dh18.39 billion) in medium-term notes (MTN).

The $5 billion sukuk is part of Dubai Bank's strategy for a more efficient capital structure through broadening and diversifying its funding streams for its continued growth and expansion activities. The sukuk programme is part of Dubai Bank's strategy for growth and expansion, which has been bolstered by the unification of Dubai Bank and Dubai Islamic Investment Group under the umbrella of the Dubai Banking Group, part of the Dubai Group, last May.

"This is a historic milestone for Dubai Bank, as we prepare to fund an aggressive plan for growth and expansion in retail and corporate Sharia-compliant banking services across the region and beyond," said Salaam Al Shaksy, the Dubai Bank CEO.

Dubai Bank has appointed UBS and Standard Chartered as arrangers for the programme, which will be listed on both the London Stock Exchange and the Dubai International Financial Exchange.

"International ratings agencies Fitch Ratings and Moody's Investors Service have rated Dubai Bank's sukuk issuance programme at long-term 'A' and A3/Prime-2 respectively," said Ahmad Elshal, CFO of Dubai Bank

Shortly after its conversion to a Sharia-compliant financial institution in January 2007, Dubai Bank launched its growth strategy. Since then, the bank has witnessed exponential growth, with the number of fully-operating, strategically-located branches increasing from only 5 in 2006 to the current total of 20, situated throughout the UAE.