Emirates Islamic, one of the leading Islamic financial institutions in the UAE, has successfully issued a USD 750 million Senior Unsecured Sukuk on 18th March 2025. This latest landmark issue supports the Bank’s strategic growth journey as well as continued progress of the Islamic finance industry.
The Sukuk attracted a very strong order book in excess of USD 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% per annum.
The Issuance was well received by global investors with 80% of the sukuk allocated to regional investors and the remaining 20% 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 said: “Emirates Islamic is pleased to conclude the successful issuance of our most recent USD 750 million Sukuk. 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. Emirates Islamic is committed to ensuring the proceeds are used to help growth the UAE economy.”
Mohammad Kamran Wajid, Deputy Chief Executive Officer added: “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 As the UAE’s preferred Islamic bank, Emirates Islamic remains committed to developing pioneering products and services to cater to the increasing demand for innovative Islamic finance solutions based on the highest standards of ethical banking.”
Ebrahim Qayed, Head of Treasury and Markets commented: “The market response to our new Sukuk Issuance has been phenomenal. Concluding two sizable deals of USD 750 mn 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.