Emirates Islamic, a leading Islamic financial institution in the UAE, has announced the successful pricing of its first-ever sustainability sukuk, amounting to $750M.
This marks the inaugural sustainability sukuk issuance from the UAE, following the release of guidelines by the International Capital Market Association (ICMA), the Islamic Development Bank (IsDB), and the London Stock Exchange Group (LSEG) on green, social, and sustainability sukuk in April 2024.
The five-year sukuk garnered strong demand from investors globally, oversubscribed by 2.8 times. The substantial order book, surpassing $2.10B, enabled the bank to narrow the profit rate to 5.431 per cent per annum, with a spread of 100 basis points over five-year US Treasuries. This sustainability sukuk adheres to Emirates NBD Group’s sustainable finance framework and complies with Shariah rules and principles determined by Emirates Islamic’s internal Shariah supervision committee.
Farid Al Mulla, CEO of Emirates Islamic, commented: “Emirates Islamic is delighted to introduce our inaugural five-year $750 million sustainability sukuk, reaffirming our commitment to sustainable Islamic financing. We are dedicated to lessening our environmental footprint, aligned with the UAE Net Zero by 2050 initiative. Our focus remains on promoting sustainable Islamic finance and guiding clients towards sustainable financial decisions, underscoring our pledge to build a more sustainable future.”
Mohammad Kamran Wajid, Deputy CEO of Emirates Islamic, added: “The successful issuance of our first sustainability sukuk represents a significant milestone in our group-wide sustainability agenda. As a leading Shariah-compliant bank in the UAE, Emirates Islamic is steadfast in addressing climate change through sustainable Islamic solutions that prioritize environmental concerns and foster a low-carbon economy.”
Vijay Bains, Group Chief Sustainability Officer and Head of ESG at Emirates NBD, remarked: “The issuance of our inaugural sustainability sukuk demonstrates our ongoing commitment to offering tailored and innovative ESG-linked financial solutions, driving the global transition towards sustainability. It reinforces the Group’s dedication to becoming pioneers in sustainable finance.”
Emirates NBD Capital and Standard Chartered Bank served as joint global coordinators, alongside Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank PJSC, First Abu Dhabi Bank PJSC, and The Islamic Corporation for the Development of the Private Sector (ICD) as joint lead managers and Joint Bookrunners. Emirates NBD Capital acted as the sole sustainability structuring agent.
Emirates NBD Group contributed to the labelled sukuk guidance and initiatives led by ICMA, IsDB, and LSEG, collaborating with key global stakeholders.
In 2023, the bank made history in UAE banking by issuing a public sukuk worth AED 1B.
