Dubai Islamic Bank Prices USD 500 Million AT1 Sukuk; Lowest Yield Ever from GCC Banks

Dubai Islamic Bank (DIB) has successfully priced a USD 500 million Additional Tier-1 (AT1) Sukuk issuance on the 15th of April 2021. The perpetual non-Callable AT1 Sukuk, which has a tenure of 5.5 years, offers an annual profit rate of 3.375% according to a statement issued by the bank.

Why it Matters?

The Sukuk issuance marks DIB’s second deal in six months, as the bank continues to build its financial buffers. The latest issuance is the lowest-ever pricing by a Gulf Cooperation Council (GCC) bank (both conventional and Islamic) on an AT1 Sukuk instrument and is also the lowest ever on a USD-denominated AT1 Sukuk globally.

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