Emirates Islamic has successfully issued a US$750 million Senior Unsecured Sukuk on 18th March 2025.
The Sukuk attracted a very strong order book in excess of $1.6 billion, resulting in a 2.1 times oversubscription rate. The strong investor demand allowed the Bank to tighten the spread by 30 basis points from initial price thoughts to 95 basis points over 5-Year US Treasuries, equating to a coupon of 5.059 percent per annum.
The issuance was well received by global investors with 80 percent of the Sukuk allocated to regional investors and the remaining 20 percent allocated to international investors.
There was demand from over 100 investors, including a considerable amount of new investors who bought the Bank’s Sukuk for the first time, reflecting the increasing name recognition of Emirates Islamic among the global investor community.
Farid AlMulla, Chief Executive Officer at the Bank, said, “This milestone emphasises the increasing recognition of Emirates Islamic among the global investor community. Islamic Finance continues to see strong growth while delivering increasingly sophisticated products and structures.”
Mohammad Kamran Wajid, Deputy Chief Executive Officer, said, “We are proud to conclude the next Sukuk in the growth journey of Emirates Islamic in line with our vision to be the most innovative Shariah-compliant bank for our counterparties, customers, people, and communities.”
Ebrahim Qayed, Head of Treasury and Markets, commented, “The market response to our new Sukuk Issuance has been phenomenal. Concluding two sizable deals of $750 million each in two consecutive years is a testimony of the global market’s growing appetite for investment opportunities from Emirates Islamic.”
Emirates NBD Capital, HSBC, Mashreqbank, Dubai Islamic Bank, Standard Chartered Bank and Sharjah Islamic Bank were the Joint Lead Managers for the issuance.
