Dubai Islamic Bank (DIB), the world's first Islamic bank and the largest Islamic financial institution in the UAE, has successfully priced a $1 billion Additional Tier 1 (AT1) Perpetual Non-Call 6-Year Sukuk, further strengthening its position in the global Islamic finance market.
The Sukuk was issued at a profit rate of 6.25%, equivalent to a reset spread of 191.10 basis points above the interpolated U.S. Treasury rate. The transaction represents one of the largest recent AT1 Sukuk issuances in the GCC region and reflects strong investor confidence in DIB’s financial strength and capital management strategy.
Despite a challenging geopolitical environment, the issuance attracted significant interest from regional and international investors. The order book exceeded $2.3 billion, resulting in an oversubscription rate of 2.3 times and enabling the bank to tighten pricing from the initial guidance.
More than 85 institutional investors from the Middle East, Europe, and Asia participated in the offering. Geographically, 83% of the allocation was distributed across the MENA region, while the remaining 17% went to investors in the UK, Europe, and other international markets.
By investor category, banks and private banks accounted for 77% of allocations, followed by fund managers at 21%, with insurance companies, pension funds, and sovereign wealth funds comprising the remaining 2%.
Dr. Adnan Chilwan, Group Chief Executive Officer of Dubai Islamic Bank, stated that the successful outcome highlights the market’s continued confidence in the bank’s resilient financial performance, disciplined capital strategy, and strong credit profile.
The Sukuk will be listed on Euronext Dublin and Nasdaq Dubai, enhancing its visibility among global investors. The transaction was jointly managed by a consortium of leading regional and international financial institutions, including Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Standard Chartered Bank, and others.
The successful issuance further reinforces DIB’s leadership in Islamic banking and demonstrates the continued global demand for high-quality Shariah-compliant investment opportunities.
