Banking & Finance Dubai Islamic Bank to raise $1bn with sustainable sukuk By Reuters February 10, 2023 Creative Commons Demand for the debt sale was over $2.75bn, excluding interest from joint lead managers Dubai Islamic Bank, the biggest Islamic lender in the United Arab Emirates, is set to raise $1 billion from a sale of five-year long sustainable sukuk, a bank document showed. The Islamic bonds launched at a yield of 4.8 percent. Initial price guidance was around 130 basis points over US Treasuries. Demand for the debt sale was over $2.75 billion, excluding interest from joint lead managers. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank and the Islamic Corporation for the Development of the Private Sector arranged the deal. In November 2022, the bank sold $750 million of its debut sustainable Islamic bond as it plans to finance environmental and social projects under a new sustainable finance framework. Last month AGBI reported that the UAE has been recognised for its commitment to financing a green and sustainable future. The Gulf state recorded the highest scores among several key markets in the Financial Services: State of the Nation Survey 2022, which spoke to 758 managers at financial institutions and banks across France, Germany, Hong Kong, Singapore, the UK, the US and the UAE. It found that 99 percent of UAE respondents agreed that financial institutions have a responsibility to support the communities they serve, up from 88 percent last year.