Dubai Islamic Bank announces successful pricing of $1 billion capital issuance
Dubai Islamic Bank announced the pricing of a $1 billion Tier One capital-eligible issuance with a perpetual (non-call six) maturity, CPI Financial reported. The issuance carries a profit rate of 6.75 per cent and mirrors the solid demand and confidence investors have in the institution. It also represents both the debut deal of the year and the first capital transaction of 2015.
Initial price thoughts of seven per cent area were released at 09:00 AM London time on Tuesday 13 January 2015 to the market. The issuance ultimately received 80 orders totaling over $2.5 billion- mainly due to the demands of a diverse investor base and listings on the Irish Stock Exchange and NASDAQ Dubai.
"The success of this transaction reflects DIB 's strong credit positioning and unwavering confidence of regional and international investors, despite challenging market conditions. The 2014 DIB growth story is unparalleled with nearly 28 per cent growth in the financing book during the first nine months of the year. Given the significant growth in core business, and the fact that this momentum is expected to continue into 2015, we tapped the market for additional Tier One Capital and executed the first such deal of 2015,"
Dr. Adnan Chilwan, Chief Executive Officer of Dubai Islamic Bank, commented
Structuring Advisors for the transaction were HSBC and Standard Chartered Bank.
Al Hilal Bank, Dubai Islamic Bank, HSBC, Emirates NBD Capital, National Bank of Abu Dhabi, Noor Bank, Sharjah Islamic Bank and Standard Chartered Bank acted as Joint Lead Managers on the offering.
