Dubai Islamic Bank (DIB) has successfully raised $500M through an additional tier 1 (AT1) sukuk, offering a 5.25 per cent annual profit rate.
The Basel III-compliant sukuk will enhance the bank’s capital adequacy ratio and improve its balance sheet, reflecting DIB’s strong financial health. The transaction attracted significant interest from a diverse group of investors across Europe, Asia, and the Middle East.
Priced with a reset spread of 133.4 basis points (bps) over the US Treasury rate, the sukuk achieved the lowest spread for an AT1 instrument globally since the 2009 financial crisis. Initially set at 5.75 per cent, DIB was able to tighten the profit rate to 5.25 per cent due to high demand.
Dr Adnan Chilwan, group CEO of DIB, highlighted that this issuance reflects the strong confidence investors have in DIB’s strategy and financial position.
The sukuk will be dual-listed on Euronext Dublin and NASDAQ Dubai, ensuring broad visibility in global capital markets. Proceeds will strengthen the bank’s Tier 1 capital and support future growth initiatives.
