Dubai Islamic Bank (DIB) today announced that it had repaid $750 million (Dh2.75 billion) five-year Sukuk, which matured on March 22, 2012, from its internal revenues.
Issued in March 2007, the Sukuk was oversubscribed three times, with 45 per cent allocation in the Middle East, 25 per cent in Asia and 30 per cent in Europe, underscoring the regional and international market confidence in DIB.
The only capital market issuance done directly by DIB, the Sukuk was issued through a special purpose vehicle, DIB Sukuk Company Limited, established in the Cayman Islands, and was the first Sukuk to be listed both on the Dubai International Financial Exchange (DIFX) and the London Stock Exchange.
Dr. Adnan Chilwan, Deputy CEO – Chief of Consumer and Wholesale Banking, DIB, said: “The repayment of the Sukuk in full is a clear demonstration of the financial strength of DIB. The ability to repay from our own resources without the need to refinance is testament to the robust fundamentals we have built over the past years. The investor confidence gained by the Sukuk across a wide geography further highlight our credentials in successfully strengthening our funding sources, despite the challenging market conditions that prevailed globally. We will continue to explore potential opportunities to expand our funding sources in the future.”
DIB reported an operating profit of Dh1.03 billion for 2011 while net profit increased to Dh1.01 billion. DIB’s total assets stood at Dh90.59 billion and the bank’s customer base continued to expand, with customer deposits reaching Dh64.77 billion at the end of 2011, and liquidity position comfortable at 74% Advances to Deposit ratio (ADR).
Recently, Tamweel a mortgage finance company majority owned by DIB, launched its own $300 million five-year Sukuk which was fully subscribed by the market.