Dubai Islamic Bank Closes USD 1 Billion Additional Tier 1 Sukuk; Lowest-Ever Yield

United Arab Emirates (UAE)-based Dubai Islamic Bank (DIB) has successfully closed a USD 1 billion perpetual non-callable additional tier 1 (AT1) Sukuk, according to a statement issued by the bank.

With a 5.5-year maturity and a profit rate of 4.625% per annum, the transaction was reported to carry the lowest ever yield achieved by any global bank on an AT1 Sukuk issuance, and is the only AT1 Sukuk to be issued from the Gulf Cooperation Council in 2020, according to media reports.

The Sukuk received substantial interest with the orderbook peaking at USD 5.7 billion, representing 5.7x subscription on the issue, attracting over 150 local, regional and international investors. The land...