Emirates Islamic Issues Landmark USD 500 Million Five-Year Sukuk; Oversubscribed 2.4 Times

United Arab Emirates (UAE)-based Emirates Islamic has announced the issuance of a USD 500 million five-year Sukuk under its USD 2.5 billion Certificate Issuance Programme on the 14th of November 2021.

Why it Matters?

The landmark Sukuk issuance received strong demand from global investors, resulting in an order book coming in at USD 1.2 billion, which was 2.4 times the issuance size. The robust demand allowed Emirates Islamic to tighten the spread on the Sukuk by 25 basis points from initial guidance, resulting in a 2.08% profit rate per annum. This pricing is the lowest spread ever paid by a bank in the UAE since 2008 for a USD benchmark public debt issuance, further indicative of the bank’s strong appeal to investors. According to Salah Amin,...