Repayment from own sources of Sukuk issued in March 2007 underlines financial strength of the bank

Dubai, March 28, 2012:

Dubai Islamic Bank (DIB) today announced that it has repaid in full a USD 750 million five-year Sukuk, which matured on March 22, 2012, from its own sources, demonstrating the bank's financial strength and comfortable liquidity position.

Issued in March 2007, the Sukuk was oversubscribed by three times, with 45% allocation in the Middle East, 25% in Asia and 30% in Europe, underscoring the regional and international market confidence in DIB.

The only capital market issuance done directly by DIB, the Sukuk was issued through a special purpose vehicle, DIB Sukuk Company Limited, established in the Cayman Islands, and was the first Sukuk to be listed both on the Dubai International Financial Exchange (DIFX) and the London Stock Exchange.

Dr. Adnan Chilwan, Deputy CEO - Chief of Consumer and Wholesale Banking, DIB, said:  "The repayment of the Sukuk in full is a clear demonstration of the financial strength of DIB. The ability to repay from our own resources without the need to refinance is testament to the robust fundamentals we have built over the past years. The investor confidence gained by the Sukuk across a wide geography further highlight our credentials in successfully strengthening our funding sources, despite the challenging market conditions that prevailed globally. We will continue to explore potential opportunities to expand our funding sources in the future."

DIB reported an operating profit of AED 1.03 billion for 2011 while net profit increased to AED 1.01 billion. DIB's total assets stood at AED 90.59 billion and the bank's customer base continued to expand, with customer deposits reaching AED 64.77 billion at the end of 2011, and liquidity position comfortable at 74% Advances to Deposit ratio (ADR).

Recently, Tamweel a mortgage finance company majority owned by DIB, launched its own USD 300 million five-year Sukuk which was fully subscribed by the market.

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About Dubai Islamic Bank:
Dubai Islamic Bank (DIB), established in 1975, is the first Islamic bank to have incorporated the principles of Islam in all its practices and is the largest Islamic bank in the UAE. DIB is a public joint stock company, and its shares are listed on the Dubai Financial Market. The bank enjoys a reputation as a leader and innovator in maintaining the quality, flexibility and accessibility of its products and services. The bank currently operates 74 branches in the UAE.

DIB has been proactive in creating partnerships and alliances at both the local and international level. The bank has established DIB Pakistan Limited, a wholly owned subsidiary which has a network of 64 branches across 26 major cities in Pakistan. DIB has also started operations in Jordan, with the establishment of Jordan Dubai Islamic Bank

DIB has earned the respect of its peers around the world for many years, and its leading position has been reaffirmed by the 79 local, regional and international accolades that it has won between 2008 and 2010. DIB has won awards across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. The bank's most recent awards include being named "Best Islamic Bank in UAE" for the fifth consecutive year by Islamic Finance News, "Best Islamic Bank" in the UAE for 2010 by NY-based Global Finance magazine, "Best Islamic Bank in the UAE" by Asiamoney magazine, and being named winner of the first-ever pan-Arab emeafinance award for corporate social responsibility.

For further information, please contact:
Nicholas Nesson / Tameem Alkintar
ASDA'A Burson-Marsteller
Dubai, UAE
Tel: 971-4-4507600
Fax: 971-4-4358040
E-mail: n.nesson@asdaa.com / t.alkintar@asdaa.com

© Press Release 2012