Dubai Islamic Bank has successfully priced a $1 billion Additional Tier 1 Perpetual Sukuk at a profit rate of 6.250 percent, marking the largest AT1 issuance from the GCC in recent period and cementing the bank's standing as a premier capital markets issuer.
The Sukuk, structured as a Non-Call 6-Year instrument, was priced at a reset spread of 191.10 basis points over the interpolated US Treasury rate. DIB, rated A3 by Moody's and A by Fitch, launched the transaction on 8 June through a one-day virtual marketing exercise before opening its orderbook on 9 June with initial price thoughts of 6.625 percent.
Investor appetite was swift and substantial. The orderbook climbed to $1.7 billion at the UK open and peaked at $2.3 billion, representing a 2.3x oversubscription rate, allowing the bank to tighten pricing by 37.5 basis points to reach the final rate. More than 85 institutional accounts across Europe, Asia and the Middle East participated in the deal.
Geographically, 83 percent of the allocation went to MENA-based investors, with the remaining 17 percent distributed to the UK, Europe and other international markets. By investor type, banks and private banks accounted for 77 percent, followed by fund managers at 21 percent, with insurance companies, pension funds and sovereign wealth funds making up the remainder.
Group CEO Dr. Adnan Chilwan said the outcome reflected the market's continued confidence in DIB's financial strength and disciplined capital strategy, particularly given the challenging geopolitical conditions surrounding the issuance.
The Sukuk will be listed on Euronext Dublin and Nasdaq Dubai. Eleven institutions served as joint lead managers and bookrunners, including Emirates NBD Capital, HSBC, Standard Chartered Bank and First Abu Dhabi Bank.
News Source: Emirates News Agency
