Dubai Islamic Bank has entered the global Sukuk market with a USD 1 billion Sustainability Linked Sukuk, marking a major step in the bank’s push toward performance driven sustainable financing.
The five year issuance was priced at a profit rate of 4.572 percent and drew strong demand from regional and international investors.
The Sukuk is DIB’s first structured under a Sustainability Linked format and builds on its earlier Sustainability Linked Finance Facilities Framework. The bank said the move reflects its commitment to advancing Islamic sustainable finance and supporting the UAE’s Net Zero 2050 goals.
Unlike traditional use of proceeds models, the new structure ties impact to measurable and independently verified performance targets. Proceeds will support sustainability linked financing for clients who have committed to meeting pre agreed KPIs under DIB’s Sustainability Linked Financing Framework, which recently received a Second Party Opinion from Institutional Shareholder Services.
Investor interest was strong throughout the marketing process, with the orderbook reaching USD 2 billion and closing at twice oversubscribed. The Sukuk saw broad participation from more than 80 institutional accounts across the Middle East, Asia, Europe and the UK. DIB recorded its highest Asian allocation for a public Sukuk at 20 percent, while 67 percent went to the MENA region.
Banks and private banks accounted for 77 percent of allocations, followed by fund managers at 17 percent and insurance companies, pension funds and sovereign wealth funds making up the rest. Final pricing tightened to 90 basis points over US Treasuries.
Dr Adnan Chilwan, Group CEO of DIB, said the issuance reflects confidence in the bank’s long term strategy and its focus on delivering measurable and responsible impact through Islamic finance.
News Source: Emirates News Agency
