Dubai Islamic Bank (DIB), the world’s first Islamic bank and the largest in the UAE, has successfully returned to the international Sukuk market with a USD 1 billion Sustainability-Linked Sukuk, priced at a profit rate of 4.572% and carrying a five-year tenor.
Rated A3 by Moody’s and A by Fitch, DIB has achieved a major milestone with its first Sukuk issued in a Sustainability-Linked format. The offering builds on the bank’s pioneering role as the first Islamic institution to introduce a Sustainability-Linked Finance Facilities Framework (SLFFF), reinforcing its commitment to innovative and performance-driven sustainable finance.
The latest issuance marks an evolution from traditional use-of-proceeds Sukuk to one tied to measurable, independently verified sustainability performance targets. Proceeds will support a diversified portfolio of sustainability-linked financing for clients committed to meeting pre-defined environmental and social KPIs.
DIB’s Sustainability-Linked Financing Framework, assessed by Institutional Shareholder Services (ISS), received a Second-Party Opinion confirming its alignment with global best practices and international sustainability-linked Sukuk guidelines.
The Sukuk attracted high global demand, with the orderbook reaching USD 2 billion, representing a 2x oversubscription. More than 80 institutional investors from Europe, Asia, and the Middle East participated. The geographic distribution included 67% allocated to MENA, 20% to Asia—the bank’s highest-ever Asian allocation for a public Sukuk—and 13% to investors in the UK, Europe, and other markets. By investor type, banks and private banks took 77%, followed by fund managers (17%), and insurance companies, pension funds, and sovereign wealth funds (6%).
Marketing for the issuance began on 10 November through virtual investor meetings highlighting DIB’s 9M’25 financial performance. Strong investor appetite enabled initial pricing guidance of 120 basis points over US Treasuries to tighten to 90 basis points, resulting in the final profit rate of 4.572%.
Group CEO Dr. Adnan Chilwan said the issuance reflects growing investor confidence in both DIB and the UAE’s credit fundamentals. “This Sustainability-Linked Sukuk is a defining step in our sustainability journey. It moves us from intention to performance and reinforces our commitment to driving measurable, independently assured impact aligned with national priorities,” he said.
The Sukuk was issued under the bank’s USD 12.5 billion Sukuk Programme, dual-listed on Euronext Dublin and Nasdaq Dubai, and aligned with DIB’s Sustainability-Linked Financing Framework. Standard Chartered Bank acted as Sustainability Advisor.
Joint Lead Managers and Bookrunners included:
Standard Chartered Bank, Arqaam Capital, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, KFH Capital, KIB Invest, Maybank, QInvest, and Sharjah Islamic Bank.
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