Dubai Islamic Bank prepares sukuk

20 May 2015

International arrangers appointed

  • Dubai Islamic Bank preparing to issue $2.5bn in sukuk
  • Six international banks appointed to manage issuance
  • The bank’s last sukuk issuance saw higher than expected demand

Dubai Islamic Bank (DIB) has appointed six joint managers to arrange a $2.5bn sukuk programme.

DIB itself, Abu Dhabi’s First Gulf Bank, London-based HSBC, Malaysian Maybank, National Bank of Abu Dhabi and the UK’s Standard Chartered Bank will arrange a series of fixed-income investor meetings in Asia and Europe from 21 May 2015.

It may then issue a benchmark US dollar senior sukuk.

DIB raised $2.5bn through a sukuk issuance listed on the Irish Stock Exchange and Nasdaq Dubai in January 2015.

The bank held an international roadshow, visiting major financial centres including London, Singapore, Hong Kong, Abu Dhabi and Dubai to garner support from investors for its $1bn tier 1 issuance.

The issuance was initially to be priced in the 7 per cent area, but as demand for the sukuk grew, the pricing was revised to a final profit rate of 6.75 per cent.

DIB’s net profit increased to AED850m ($231m) in the first quarter of 2015, up 34 per cent compared with AED637m for the same period in 2014.

Its total assets stood at AED139.6bn at the end of March.

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