Mar 29 2012
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DIB repays $750m sukuk from own resources
Thursday, Mar 29, 2012
Dubai Dubai Islamic Bank ( DIB ) said it has repaid in full a $750 million (Dh2.75 billion) five-year sukuk which matured on March 22 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 per cent allocation in the Middle East, 25 per cent in Asia and 30 per cent 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 on both the Dubai International Financial Exchange (DIFX) and the London Stock Exchange.
“The investor confidence gained by the sukuk across a wide geography further highlights 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.”
Recently, Tamweel, a mortgage finance company majority owned by DIB , launched its own $300 million five-year sukuk which was fully subscribed by the market.
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