Dubai Islamic Bank secures $1 billion with record Sukuk oversubscription

Dubai Islamic Bank (DIB) has priced a $1 billion Additional Tier 1 Perpetual Sukuk. The instrument carries a profit rate of 6.250% and will not be redeemable for at least six years. Marketing for the Sukuk began on Monday, 8 June, with the orderbook opening the following day. The Sukuk is structured as a Perpetual Non-Call 6-Year instrument. This means it has no fixed maturity date and the issuer has committed not to call it for a minimum of six years from issuance. It will be listed on both Euronext Dublin and Nasdaq Dubai.

The transaction saw strong investor interest. The orderbook peaked at over $2.3 billion, resulting in a 2.3x oversubscription rate. More than 85 institutional accounts from Europe, Asia, and the Middle East took part.

Geographically, 83% of the Sukuk was allocated to the MENA region, with the remaining 17% distributed among the UK, Europe, and other international investors. By investor type, 77% went to banks and private banks, 21% to fund managers, and 2% to insurance companies, pension funds, and sovereign wealth funds. The Sukuk includes a reset spread of 191.10 basis points over the interpolated US treasury rate. The Sukuk will now be listed on two major exchanges. Its perpetual nature and six-year non-call period provide long-term capital for DIB. The high demand and diverse investor base highlight strong market confidence in the offering.