Dubai: Dubai Islamic Bank (DIB) priced a $1 billion perpetual non-call 5.5- year additional tier 1 (AT1) sukuk with a profit rate of 4.625 per cent per annum.
This transaction carries the lowest ever yield achieved by any bank globally on an AT1 Sukuk issue and is the only AT1 sukuk from the GCC in 2020.
“Despite the turmoil witnessed in markets this year during the peak of the COVID-19 crisis, DIB’s success in this landmark transaction is a testament to the bank’s strong credit profile and standing with international and regional investors. It reaffirms the confidence of international investors not only in DIB but in Dubai and the UAE, DIB said in a statement.
The deal was priced intraday after completing a global investor call, which was attended by several local, regional and international investors. The sukuk attracted more than 150 high-quality investors and the success of DIB’s offering can be gauged by the substantial international interest in the sukuk as the orderbook peaked at $5.7 billion – representing a 5.7x subscription on the issue.
“Despite the challenging global environment due to the COVID-19 pandemic during which the market for hybrid capital issuances was shut for quite sometime, DIB created a record of the lowest-ever yield on an AT1 sukuk by any bank globally,” said Dr. Adnan Chilwan, Group Chief Executive Officer, DIB.
The sukuk is issued under DIB Tier 1 Sukuk (4) Ltd. and is listed on Euronext Dublin and NASDAQ Dubai.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers and Bookrunners on this transaction.