Dubai – Mubasher: Emirates Islamic Bank has successfully priced a $500 million sustainability-linked financing Sukuk, the first globally.
The Sukuk attracted a strong demand with $1.20 billion and was oversubscribed 2.4 times, according to a press release.
The offering drew diversified interest, with 10% institutions in Europe, 5% in Asia, and 83% in the Middle East participating.
Moreover, the hike in orders enabled the bank to compress the spread to 95 basis points over five-year US Treasuries, equating to a profit rate of 4.54% annually.
Farid Al Mulla, CEO of Emirates Islamic, said: “The new Sustainability-Linked Financing Sukuk Framework demonstrates our bank's innovation in this space and aligns with our long-term strategy."
Mohammad Kamran Wajid, Deputy CEO of Emirates Islamic, added: "We have a successful track record in the international Sukuk market and this transaction cements our profile with fixed income investors.”
The Sukuk was issued under Emirates Islamic’s $4 billion Sukuk program, which is listed on both Nasdaq Dubai and Euronext Dublin stock exchanges.
The proceeds from this issue will fund various general corporate purpose sustainability-linked financing projects, in line with Emirates Islamic’s Sustainability-Linked Financing Sukuk Framework.
Emirates NBD Capital and Standard Chartered Bank acted as joint sustainability advisors. The joint lead managers and bookrunners for this deal were Arab Banking Corporation, Citibank, Dubai Islamic Bank (DIB), Emirates NBD Capital, Mashreq, Sharjah Islamic Bank, and Standard Chartered Bank.
At the end of June 2025, Emirates Islamic Bank witnessed 19% year-on-year (YoY) higher net profits before tax at AED 2.20 billion.
