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Strong investor interest with a nearly USD 2 billion order book enabled DIB to price inside its existing Sukuk yield curve
Dubai - Dubai Islamic Bank has successfully priced a US $750 Million Sukuk issuance maturing on 3rd June 2020. The issuance from DIB's USD 2.5 billion Sukuk Programme carries a profit rate of 2.921% reflecting the strong demand for the credit and confidence investors have in the world's first Islamic bank.
This landmark RegS transaction was executed following a global roadshow covering key financial centers (London, Singapore and Kuala Lumpur). The issuance ultimately received more than 85 orders amounting to nearly USD 2 billion on the back of insatiable demand from a diverse investor base. The instrument will carry a dual listing on the Irish Stock Exchange and NASDAQ Dubai.
Initial price thoughts of MS+140bps area were released at 06:00 AM London time on Wednesday 27th May 2015 to investors. The early guidance was further tightened following the strong demand generated for the transaction. With a final outcome at MS+130bps +/-5bps, the issuance was subsequently priced at a profit rate of 2.921% (MS+125bps spread), this being notably inside DIB's existing Sukuk yield curve, representing a strong appetite for DIB's paper and investor interest in Sukuk issuances.
The order book was driven by strong demand across the globe, and given the fact that it was oversubscribed nearly three times, DIB continued to support the investor base across Middle East, GCC, Asia, Europe and other regions. The varied investor type shows the demand for DIB credit across a broad spectrum global investors with the participation coming from banks, fund managers, private banks, supranationals, pension funds and insurance companies, amongst others.
Dr. Adnan Chilwan, Chief Executive Officer of Dubai Islamic Bank, commented "This is the second time this year that DIB has accessed the global capital market with a successful result. The overwhelming demand from investors has enabled us to price inside DIB's current yield curve, showcasing investor interest and hunger for DIB paper in the market."
He further added: "Over the recent past, we have continuously engaged with the global investor community, adopting an extremely transparent and open approach to imparting critical information to the capital markets and allowing our stakeholders to make far more accurate and informed decisions about the Bank. The success of this deal is a testament to DIB's standing with investors across the globe and the faith and confidence they place in the management team to deliver on the strategic agenda and plans communicated to the market."
Dubai Islamic Bank, First Gulf Bank, HSBC, Maybank, National Bank of Abu Dhabi, and Standard Chartered Bank acted as Joint Lead Managers on the offering.
Arab Banking Corporation, Abu Dhabi Islamic Bank, Sharjah Islamic Bank and Union National Bank acted as Co-lead Managers on the offering.
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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 90 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 more than 175 branches across 56 major cities in Pakistan. DIB has also started operations in Jordan, with the establishment of Jordan Dubai Islamic Bank, and in 2014, it acquired a 24.9 percent stake in PT Bank Panin Syariah in Indonesia.
Alongside its accomplishments as a commercial organisation, DIB has always recognised its wider role in society. The bank supports the communities in which it operates through the DIB Foundation, a non-profit social, humanitarian and charitable organisation which distributes millions of dirhams to good causes at home and abroad each year.
For its contribution to both the banking industry and the wider community, DIB has earned the respect of its peers around the world. The bank's leading position has been reaffirmed by more than 165 local, regional and international accolades that it has won since 2004. DIB has won awards across diversified areas, including retail, corporate and investment banking, as well as CSR and consultancy services. Dubai Islamic Bank has been also declared the winner of the "Best Islamic Bank, UAE - 2014" by World Finance - Islamic Finance Awards 2014. DIB's notable recognitions recently included being named the "Best Regional Commercial Bank - Middle East" at the Islamic Business & Finance Awards , winning five accolades at the Banker Middle East Industry Awards 2015 as the "Best Islamic Bank"; "Best Sukuk Arranger"; "Best Islamic Retail Bank", "Best Premium Bank - UAE" and "Best Investment Bank". DIB was also recognised for its retail banking services at the Banker Middle East Product Awards 2015, where it won the accolades for "Best Islamic Card" and "Best GCC Equity Fund", as well as being chosen as the "Islamic Bank of the Year -UAE" and "Most Established Bank of the Year - UAE" at 2015 Business Excellence Awards for the second consecutive year. Earlier this year, the bank has been recognised for its expertise in arranging complex deals, winning accolades for "Murdarbah Deal of the Year"; "Ijarah Deal of the Year"; and "Pakistan Deal of the Year" at the Islamic Finance News Deal of the Year Awards 2015.
For further information, please contact:
Kanishk Mishra / Nadine Mazraani
DABO & CO
Dubai, UAE
Tel: +9714-237-8000
Email: kanishk.m@daboandco.com ; nadine.m@daboandco.com
© Press Release 2015
