Dubai Islamic Bank closes lowest-ever pricing on an AT1 issuance from the GCC
Sukuk was 5.6 times oversubscribed with an orderbook that peaked at $2.8 billion
Dubai: Dubai Islamic Bank PJSC (DIB) has priced a $500 million Perpetual Non-Call 5.5-year Additional Tier 1 Sukuk with a profit rate of 3.375 per cent per annum.
This transaction represents the lowest ever pricing achieved by a GCC bank (both conventional and Islamic) on an Additional Tier 1 instrument and the lowest ever on a US dollar AT1 Sukuk globally.
Despite the volatility witnessed in credit markets during the past month on account of US Treasury rates, achieving this landmark success in the current scenario is testament to the bank’s strong credit profile and standing with international and regional investors.
The deal was priced intraday after completing investor calls, which were attended by several local, regional and international investors. Despite the record low yield, the Sukuk was 5.6x oversubscribed with an orderbook that peaked at $2.8 billion which is a further testament to investors reaffirming their commitment to UAE and DIB in particular.
“We are very pleased with the outcome of our issuance today. Given that markets had been fairly volatile during the last several weeks on account of underlying US Treasury rates rising rapidly, successfully executing this issuance at the lowest-ever pricing on a USD AT1 instrument is an achievement we are all proud of," said Dr. Adnan Chilwan, Group Chief Executive Officer, DIB.
The Sukuk is issued under DIB Tier 1 Sukuk (5) Ltd. and is listed on Euronext Dublin and NASDAQ Dubai.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners on this transaction.