Dubai Islamic Bank (DIB) launched a US$500 million Sukuk on the 22nd May, in an offering that formed part of its US$2.5 billion trust certificate issuance program. The sale also marked the first time DIB has tapped the debt markets since 2007, when it issued a US$750 million Sukuk that matured in March this year. The Sukuk was repaid via DIB’s own funding sources.
DIB’s latest offering was issued via DIB Sukuk, the bank’s special purpose company, incorporated in the Cayman Islands solely to act as the issuer of the certificates and as trustee for Sukukholders.
Utilization of proceeds
Dr Adnan Chilwan, the deputy CEO of DIB, said that the new issuance was driven by the bank’s need to maintain a presence in the international debt capital markets, in addition to its strategy of diversifying its funding sources.
Subscription
The issuance, which was priced at 365 basis points over five-year midswaps, was oversubscribed four times. The papers saw a 61% take-up by banks, alongside funds (24%), private banks (8%) and sovereign and supranational agencies (7%).
Participating banks and law firms
In addition to the joint lead managers, which also acted as joint bookrunners, DIB hired Sharjah Islamic Bank and Union National Bank as senior co-managers and Qatar Islamic Bank as co-manager.
The transaction also saw the participation of offshore legal firm Maples and Calder, which advised DIB on the set-up of DIB Sukuk.— EB
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Dubai Islamic Bank Sukuk US$500 million 22nd May 2012
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