Warba Bank acted as Joint Lead Arranger and Book-runner on the successfully placed Sukuk issuance for Dubai Islamic Bank PJSC (“DIB”), rated A3 by Moody's and A by Fitch (both stable). The five - year US$ 750 million issuance followed DIB’s Tier Sukuk issuance early 2019 and was issued at a discount of US $ 99.752, with a coupon rate of 2.95% to produce a 3.02% yield and structured based on the principles of Islamic Wakalah. Warba Bank was appointed alongside other regional and international financial institutions to manage the Bank’s second sukuk issuance this year listed on Euronext Dublin and NASDAQ Dubai under its US$ 7.5 billion programme.
Thuwaini Khalid Al-Thuwaini, Chief Investment Banking Officer at Warba Bank said that the Sukuk issuance attracted remarkable demand. The issuance was successful in generating 2.7 times over subscription with the order book reaching over US$ 2 billion. We, at Warba bank, are pleased play such a lead role in this Sukuk issuance for Dubai Islamic Bank under the Wakala-based Sukuk programme of US 7.5 billion. The Sukuk’s profit rate of 2.95% is the tightest achieved by a Financial Institution for Sukuk in 2019. The deal was made following a marketing plan and roadshows to introduce the Bank to investors of the global U$ in Hong Kong and London, as well as several investor calls. The meetings were arranged to demonstrate management’s ability to deliver on its strategy and showcase the strong credit fundamentals of the bank. The roadshow resulted in significant demand from Middle Eastern, Asian and European investors. In terms of distribution, 69% of the Sukuk was allocated to MENA region with 15% to Asian and 16% to European investors. The breakdown by type was, 48% banks and private banks, 40% fund managers, and 12% multilateral and other institutions.
Al-Thuwaini pointed out that the Transaction was successfully led by Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Maybank, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank acted as Joint Lead Managers and Bookrunners on this transaction. The Islamic Corporation for the Development of the Private Sector acted as a Joint Lead Manager and Kuwait International Bank acted as a Co-manager.
He elaborated that the law firm Clifford Chance acted as legal counsel for the banks, while Allen and Overy represented DIB.
Al-Thuwaini added : “Warba Bank continues to support the business sector in emerging markets by providing them with premium financing and investment solutions marked by flexibility and efficiency based on the Bank's strategy to position Warba Bank as a Islamic champion bank in the corporate and investment sector both in Kuwait and in international markets.
Thuwaini Khalid Al-Thuwaini ... Chief Investment Banking Officer at Warba Bank