Dubai Islamic Bank's $1 Billion Sukuk Draws $2.3 Billion Demand
The lender's AT1 issuance attracted more than 85 institutional investors across three regions.
Dubai Islamic Bank (DIB), the UAE's largest Islamic bank, has priced a $1 billion Additional Tier 1 (AT1) perpetual sukuk after attracting orders exceeding $2.3 billion from institutional investors.
Launched against a backdrop of geopolitical uncertainty and volatile markets, the issuance was described as one of the largest recent AT1 sukuk sales in the GCC.
The orderbook peaked above $2.3 billion, allowing the bank to tighten pricing from initial guidance of around 6.625% to a final profit rate of 6.25%.
More than 85 institutional accounts from the Middle East, Asia and Europe participated in the offering. Investors from the MENA region accounted for 83% of allocations, with the remaining 17% going to the UK, Europe and other international markets.
By investor type, banks and private banks received 77% of allocations, followed by fund managers with 21%. Insurance companies, pension funds and sovereign wealth funds accounted for the remaining 2%.
Dubai Islamic Bank began marketing the issuance on June 8th through investor calls focused on its recent financial results. The orderbook officially opened on June 9th and grew to $1.7 billion by the start of trading in the UK before reaching its peak.
The perpetual sukuk carries a non-call period of six years and will be listed on both Euronext Dublin and Nasdaq Dubai.
Arqaam Capital, ASB Capital, DIB, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mizuho, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank acted as joint lead managers and bookrunners.
