Dubai Islamic Bank lists $750m inaugural sustainable Sukuk on Nasdaq Dubai

Dubai Islamic Bank (DIB) rang the market-opening bell on Monday to celebrate the listing of its inaugural sustainable Sukuk with a value of $750 million on Nasdaq Dubai.

The Sukuk is the first-ever sustainable Sukuk from a UAE entity and was issued in line with DIB’s Sustainable Finance Framework, which was created to facilitate financing of green and social initiatives and projects. DIB has successfully priced the five-year senior issuance with a profit rate of 5.493 per cent per annum representing a spread of 155bps over five-Year US Treasuries.

The new listing was admitted on November 30, 2022.

The bank issued the new Sukuk under its $7.5 billion Sukuk program. It has raised the total value of DIB’s Sukuk listed on Nasdaq Dubai under this program to $5.55 billion and the total value of all DIB Sukuk listed on the region’s international financial exchange to $7.8 billion. The new listing has driven the total value of ESG-linked bonds and Sukuk listed on Nasdaq Dubai to $16.825 billion.

Dr. Adnan Chilwan, Group CEO of DIB, said: “We are delighted to accomplish this deal that has achieved several landmarks as the first-ever sustainable Sukuk from a UAE entity and the largest issue size in the international capital markets from a GCC bank since February 2022. The strong demand from investors demonstrates the market’s confidence in DIB’s growth strategy and our active leadership role in empowering economic growth. Our listing on Nasdaq Dubai supports our links with investors around the world through the high visibility and well-regulated platform that the exchange provides.”

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, said: “We are delighted to welcome the issuance and listing of DIB’s new Sukuk as a step forward in Nasdaq Dubai’s endeavor to provide market participants with a world-class ecosystem that supports the growth of sustainable finance in Dubai and beyond. We are committed to further expanding our services in line with the requirements of issuers and investors and particularly supporting Dubai and the UAE’s strategies pertaining to sustainable finance and ESG-linked market activities.”