By Staff Reporter
Dubai Islamic Bank (DIB) has launched a landmark USD 1 billion Sustainability-Linked Sukuk, marking a major advancement in the bank’s commitment to performance-driven sustainable finance. The five-year Sukuk was priced at a profit rate of 4.572 percent and attracted strong regional and international demand.
As DIB’s first Sukuk structured under a Sustainability-Linked format, the issuance builds on the bank’s Sustainability Linked Finance Facilities Framework and reinforces its support for the UAE’s Net Zero 2050 goals. Unlike traditional use-of-proceeds structures, this Sukuk links its impact to independently verified, measurable performance targets.
Proceeds will back sustainability-linked financing for clients committed to achieving pre-agreed KPIs under DIB’s framework, which recently received a Second Party Opinion from Institutional Shareholder Services.
Investor appetite remained strong throughout the marketing phase, with the orderbook reaching USD 2 billion and closing at twice oversubscribed. More than 80 institutional investors from the Middle East, Asia, Europe, and the UK participated. DIB achieved its highest-ever Asian allocation for a public Sukuk at 20 percent, while 67 percent was allocated to the MENA region.
Banks and private banks secured the majority of allocations at 77 percent, followed by fund managers with 17 percent, and insurance companies, pension funds, and sovereign wealth funds comprising the remainder. Final pricing tightened to 90 basis points over US Treasuries.
Group CEO Dr. Adnan Chilwan noted that the issuance underscores strong investor confidence in DIB’s long-term strategy and its commitment to generating measurable, responsible impact through Islamic finance.
Source: Emirates News Agency
