Digital Assets in Capital Markets

Advanced course on digital assets - assets created using a blockchain/DLT network - designed for finance professionals.

IBF-STS
8 CACS CPD Hours

15 November 2022 (Tuesday) | 9am-5pm

Dubai Islamic Bank (DIB) is planning to revisit the international bond market with a proposed dollar denominated perpetual Additional Tier 1 (AT1) sukuk issuance, as per Zawya sources. The proposed issuance from the UAE’s largest Islamic lender can hit the primary markets as soon as this week, the sources added. DIB, rated A by Fitch, last sold a dollar AT1 sukuk in November last year with a coupon of 4.625% and first callable in May 2026. The perps, which carry a coupon reset of 6Y USD Swap Rate + 407.7bp, have rallied post issuance to currently trade at 105.125 with a yield to call of 3.52%. This comes after several regional peers have taken the current low interest rate environment as an opportunity to raise capital via AT1s. Most recently, Kuwaiti lender Boubyan Bank raised $500mn via AT1s issued last week at a coupon of 3.95% and callable in 2026 that are currently trading at 100.29 with a yield to call of 3.89%.

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