Key Takeaways
- • Dubai Islamic Bank (DIB), rated A3 by Moody's and A by Fitch, mandated a USD-denominated perpetual non-call 6-year benchmark AT1 sukuk with a virtual roadshow commencing June 8, 2026.
- • An 11-bank syndicate—including Arqaam Capital, ASB Capital, Emirates NBD Capital, First AbuDhabi Bank, HSBC, KFH Capital, Mizuho, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank—serves as joint lead managers and joint bookrunners on the Mudaraba issuance.
- • The sukuk is expected to list on both Euronext Dublin and Nasdaq Dubai, with FCA/ICMA stabilization rules applying to the transaction.
- • This issuance reflects continued capital market activity among UAE-based financial institutions raising Additional Tier 1 (AT1) capital to strengthen regulatory capital positions.
Summary
Dubai Islamic Bank (DIB), the UAE's largest Islamic bank with credit ratings of A3 from Moody's and A from Fitch (both carrying stable outlooks), has mandated a dollar-denominated perpetual non-call 6-year benchmark AT1 sukuk. The deal structure represents a Mudaraba issuance, the Islamic finance equivalent of profit-sharing arrangements commonly used in sukuk offerings.
The transaction is being managed by a broad syndicate comprising 11 institutions: Arqaam Capital, ASB Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mizuho, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank. These banks have been appointed as joint lead managers and joint bookrunners, indicating shared responsibility for distributing the securities and managing investor relations throughout the placement process.
A virtual deal roadshow commenced on June 8, 2026, to present the sukuk to institutional investors. The listing is expected on both Euronext Dublin and Nasdaq Dubai, providing dual-exchange access and broadening the potential investor base. The transaction operates under FCA/ICMA stabilization rules, which govern post-pricing trading activities and underwriter support mechanisms.
This capital raise aligns with broader trends among UAE financial institutions accessing international capital markets for AT1 issuances, a crucial instrument for maintaining regulatory capital ratios under CBUAE requirements. DIB's stable credit ratings and the composite strength of the lead manager group underscore investor confidence in the UAE banking sector's capital structure management during the current market environment.
The transaction is being managed by a broad syndicate comprising 11 institutions: Arqaam Capital, ASB Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mizuho, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank. These banks have been appointed as joint lead managers and joint bookrunners, indicating shared responsibility for distributing the securities and managing investor relations throughout the placement process.
A virtual deal roadshow commenced on June 8, 2026, to present the sukuk to institutional investors. The listing is expected on both Euronext Dublin and Nasdaq Dubai, providing dual-exchange access and broadening the potential investor base. The transaction operates under FCA/ICMA stabilization rules, which govern post-pricing trading activities and underwriter support mechanisms.
This capital raise aligns with broader trends among UAE financial institutions accessing international capital markets for AT1 issuances, a crucial instrument for maintaining regulatory capital ratios under CBUAE requirements. DIB's stable credit ratings and the composite strength of the lead manager group underscore investor confidence in the UAE banking sector's capital structure management during the current market environment.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.