Dubai, UAE: DIB, rated A3 by Moody’s and A by Fitch, the world's first Islamic bank and the largest in the UAE, has successfully priced a USD 1 billion Additional Tier 1 Perpetual Non-Call 6-Year Sukuk at a profit rate of 6.250%, equivalent to a reset spread of 191.10 basis points over the interpolated U.S. treasury rate.

The transaction reflects strong investor confidence in DIB’s robust credit fundamentals, resilient profitability, and prudent capital management framework. Executed against a challenging geopolitical backdrop, the issuance attracted significant demand from regional and international investors, reaffirming the Bank’s credit strength and strategic market positioning.

DIB successfully raised USD 1 billion through the public AT1 markets, marking the largest GCC AT1 issuances in the recent period and reinforcing its position as a leading capital markets issuer. Strong participation from dedicated Islamic investors further reflects the depth of demand for DIB’s credit and the Bank’s leadership within the global Sukuk investor base.

 Dr. Adnan Chilwan, Group Chief Executive Officer of DIB, said: “The strong outcome of this issuance reflects the market’s continued confidence in DIB’s financial strength, disciplined capital strategy and ability to deliver successful transactions even in challenging conditions. The depth and quality of demand reaffirm the Bank’s standing as a trusted issuer in the global Sukuk market and underline the resilience of its credit profile.”

The transaction generated robust demand with the orderbook peaking at over USD 2.3 billion, representing a 2.3x oversubscription rate. More than 85 institutional accounts from Europe, Asia and the Middle East participated in the Sukuk. Geographically, 83% of the Sukuk was allocated to the MENA region and 17 % to the UK, Europe and other international investors. By investor type, 77% was allocated to banks and private banks, 21% to Fund Managers and 2% to Insurance companies, Pension Funds and Sovereign Wealth Funds.

DIB started marketing the Sukuk on Monday, 8 June, through a series of investor calls aimed at updating investors on its recent quarterly financial performance. The one-day virtual deal marketing exercise proved highly efficient, particularly in a volatile market environment where minimising execution risk and reducing time spent in the market are critical.

Investor reception was positive, allowing the Bank to open the orderbook on Tuesday, 9 June, with Initial Price Thoughts of 6.625% area. The orderbook quickly grew to USD 1.7 billion at UK open before peaking at USD 2.3 billion, allowing pricing to be tightened to a final profit rate of 6.250%.

The Sukuk will be listed on Euronext Dublin and Nasdaq Dubai. The Joint Lead Managers and Bookrunners on the transaction are Arqaam Capital, ASB Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mizuho, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank.