Dubai Islamic Bank has priced a USD 1 billion sustainable sukuk, marking the lender's third issuance of this kind. The five-year transaction was priced in February 2024.
The deal takes the bank's total outstanding sustainable sukuk to USD 2.75 billion.
SUSTAINABLE FINANCE CONTEXT
At COP28, UAE banks collectively committed to channelling AED 1 trillion into sustainable finance.
Sustainable sukuk differ from conventional green bonds in that proceeds must satisfy both Sharia principles and sustainability frameworks.
PRICING
The bank confirmed the transaction in a statement published on its website, noting that the proceeds would be allocated in line with its sustainable finance framework. The five-year sukuk was priced at a profit rate of 5.24%, a spread of 95 basis points over US Treasuries.