Banking & Finance Dubai Islamic Bank sells $750m in debut sustainable sukuk By Reuters November 23, 2022 Creative Commons The sukuk, which mature in five years, were sold at 155 basis points over US Treasuries Dubai Islamic Bank sold $750 million of its debut sustainable Islamic bond on Tuesday, a bank document showed. The sukuk, which mature in five years, were sold at 155 basis points (bps) over US Treasuries, tightened from initial guidance of around 175 bps over after demand topped $1.6 billion, the document showed. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, KFH Capital, HSBC, Sharjah Islamic Bank and Standard Chartered are arranging the debt sale. The deal comes as issuers in the Gulf – where international bond sales have plummeted this year amid enduring volatility and rising rates – pounce on windows of opportunity to issue debt in choppy markets. Dubai’s Mashreq raised $500 million in Tier 2 bonds last Thursday, on the heels of a $700 million bond sale by Banque Saudi Fransi a day before. Last month, Dubai Islamic Bank said it is planning to finance environmental and social projects under a new sustainable finance framework. The framework will allow the lender to issue green and sustainability-linked Islamic bonds and loans to fund projects in renewable energy, clean transport, green buildings and wastewater management as well as support job creation and affordable housing.
