Dubai Islamic Bank (DIB), UAE’s largest Islamic lender, is planning an issuance of ~$500mn dollar denominated sukuk, according to Reuters sources. Banks have already been hired for the deal which could be priced as soon as next week. DIB had sold $1bn 1.959% 2026s in June and $500mn 3.375% Perp NC5 AT1 sukuk in April which had set a record low coupon for AT1s from the region at the time of issuance.
Even after energy prices have rebounded this year resulting in reduced financing needs, several issuers from the Gulf are expected to return to the international debt markets in the next few weeks to take advantage of the existing low interest rates. The total Gulf issuance has been $95bn YTD vs. $111bn in entire 2020.
DIB’s 1.959% 2026s and 3.375% AT1 sukuk were down 0.07 and 0.1 to trade at 100.15 and 99.64 respectively.
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