Nasdaq Dubai recently announced that it welcomed the listing of a $500 million sukuk by Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE. The additional tier 1 (AT1) sukuk was issued at a profit rate of 5.25 percent per annum and received strong investor demand, resulting in substantial oversubscription.
Strong investor demand
This strategic issuance reinforces Dubai Islamic Bank’s leadership in the global Islamic finance sector. Moreover, it provides additional capital to support its growth strategy. The listing attracted a diverse range of investors, including financial institutions, private banks, and fund managers from Europe, Asia, and the Middle East. This diverse participation underscores the growing appeal of Islamic financial instruments. Moreover, it highlights investor confidence in the UAE’s robust financial market.
Notably, the sukuk is dual listed on both Nasdaq Dubai and Euronext Dublin.
To commemorate the sukuk listing, Saeed Wajdi, chief of treasury at Dubai Islamic Bank, rang the bell at the market-opening ceremony at Nasdaq Dubai, alongside Hamed Ali, CEO of Nasdaq Dubai and DFM.
Global hub for sukuk
With this listing, Nasdaq Dubai further cements its position as a leading global hub for sukuk. The market has total outstanding sukuk worth $93 billion now across 102 listings. In addition, it has $133 billion in capital market listings.
“The successful reception of our $500 million sukuk listing on Nasdaq Dubai transcends beyond reaffirming market confidence in Dubai Islamic Bank. It signifies a robust endorsement of the UAE’s economic resilience and future ambitions,” stated Dr. Adnan Chilwan, group CEO of Dubai Islamic Bank.
In line with the leadership’s transformative vision, the bank is driving initiatives that strengthen the national economy. Moreover, it is bolstering efforts that position it as a global leader in Islamic finance. “This listing amplifies our profile, connecting us with a broader spectrum of investors and utilizing Nasdaq Dubai’s well-regulated platform to expand our global reach and elevate our investor relations,” he added.
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$9 billion through 11 sukuk listings
The transaction, executed intra-day, achieved a reset spread of 133.4 basis points over US Treasuries. This marks the lowest spread for an AT1 instrument globally since the 2009 financial crisis. Rated A3 (Stable) by Moody’s and A (Stable) by Fitch, Dubai Islamic Bank currently boasts an outstanding value of over $9 billion through 11 Sukuk listings on Nasdaq Dubai.
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