Dubai Islamic Bank Pakistan Limited (DIBPL) is set to raise Rs. 3 billion through Additional Tier 1 Sukuk under Mudarabah Sukuk Certificates.
The Sukuk issue was oversubscribed, closing at an issue size of Rs. 3.12 Billion, reflecting strong demand and confidence by the investors. It received interest from a diverse range of institutional investors including Islamic banks, conventional banks, and their Islamic banking windows, corporate entities, Development Financial Institutions, and Insurance/Takaful companies. In total, 25 institutional investors participated in the issue.
The Sukuk is perpetual and has a Call Option exercisable on or after 5 years, subject to prior approval of SBP. The instrument carries a profit rate of 175 basis points per annum, over 3 Month KIBOR, payable monthly.
“The Additional Tier 1 Sukuk raised will help maintain our competitive edge as one of the best performing banks in the financial industry whilst complying with regulatory requirements,” said Junaid Ahmed, Chief Executive Officer of Dubai Islamic Bank Pakistan Limited.
JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned an instrument rating of ‘A’ (Single-A) to DIBPL’s Basel III compliant Additional Tier-1 Sukuk. Outlook on the assigned rating is ‘Stable’ whereas the entity ratings of the Bank are AA-(Double A Minus) and A-1 (A-One) for medium to long term and short term respectively indicating high credit quality.