Dubai Islamic Bank secures $1.2 billion demand for debut $750m Islamic financing

Dubai: Dubai Islamic Bank (DIB) has secured about $1.2 billion in commitments from regional and international banks for its debut syndicated Islamic financing facility, significantly exceeding the $750 million it set out to raise.

The three-year Senior Unsecured Commodity Murabaha Term Facility was subscribed at around 1.6 times the facility size, with the bank saying the strong demand came despite a complex global market environment and continued geopolitical uncertainty in the region.

The transaction marks DIB's first syndicated Islamic financing deal and is aimed at further diversifying the bank's sources of institutional funding.

DIB said the participation from regional and international banks reflects continued confidence in its credit profile, balance sheet strength and longer-term growth prospects.

Dr Adnan Chilwan, Group CEO of DIB, said the level of demand was particularly significant given the market backdrop.

"The successful completion of our debut syndicated Islamic financing facility marks an important milestone in DIB's funding strategy and reflects the confidence that leading regional and international institutions continue to place in our franchise," he said.

"The strength of demand and quality of participation, particularly against a complex market backdrop, speak to the resilience of our balance sheet, the strength of our credit profile and the disciplined approach that continues to guide our growth."

For DIB, the transaction is not simply about raising $750 million. The bank said the facility will broaden its access to institutional funding and deepen relationships with banks in international markets.

"Beyond the transaction itself, this facility further diversifies our funding base, deepens our relationships with key banking partners across global markets and demonstrates the growing relevance of Shariah-compliant financing within the international institutional landscape," Chilwan said.

"As DIB continues to grow, we remain focused on accessing liquidity through diversified and efficient channels while advancing the reach and sophistication of Islamic finance globally."

The facility complements DIB's wider funding programme and gives the bank another route to institutional liquidity through Shariah-compliant structures.

HSBC Bank Middle East, Mizuho Bank and Standard Chartered led the syndication, acting as Initial Mandated Lead Arrangers, Bookrunners and Coordinators.

The transaction also reinforces DIB's position in international Islamic finance markets, where the bank is seeking to expand the reach of Shariah-compliant funding structures.

The bank said its group assets now exceed $115 billion, with market capitalisation of more than $18 billion. It has around 12,000 employees and more than 540 branches across its international network, serving more than 11 million customers across the group.