Emirates Islamic closes US$ 750 million Sukuk issuance

Emirates Islamic, among the leading Islamic banks in the UAE, today revealed that it had effectively closed the issuance of a US$ 750 million 5-year Sukuk from its US$ 2.5 billion Certificate Issuance Programme. The issue, which will be listed on NASDAQ Dubai and the Irish Stock Exchange, got overwhelming investor interest from around the world and marked the Bank's return to the global financial obligation capital markets after a duration of 4 years.

In September 2015, Fitch, the global scores firm, assigned Emirates Islamic a long term Issuer Default Rating (IDR) of 'A+' with a Stable Outlook, positioning Emirates Islamic amongst the greatest rated banks in the UAE.

Commenting on the Sukuk issuance, Jamal Bin Ghalaita, Chief Executive Officer of Emirates Islamic stated: "We are exceptionally pleased that the Sukuk issuance has been greatly oversubscribed, a testament to our success and financiers' belief in our growth capacity. As one of the fastest growing banks in the UAE in 2014, we are confident of maintaining our growth momentum over the coming years. We have chosen to tap the marketplace now to benefit from the current market rates to drive our method and help us achieve our objective to become the clear leader in the Islamic banking sector."

For the twelve months ending December 31, 2015, the bank reported a 76 per cent year-on-year boost in net earnings to AED 641 million. The bank's total earnings (internet of consumers' share of profit) throughout the duration rose to AED 2.43 billion, up 25 percent compared to AED 1.95 billion in 2014.

Bin Ghalaita even more included, "The strong need for this Sukuk is a clear indication of the durability of the UAE economy, favorable outlook of the country's banking sector and the bank's strong credit basics and growth outlook. Dubai has plainly become the worldwide hub for Sukuk, and we anticipate that this listing will provide additional incentive to Dubai's aim to end up being the international capital of Islamic economy, as per the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minster, and Ruler of Dubai."

The Sukuk was priced at 5Y Mid-swap+220bps and oversubscribed by 2.95 times. It attracted investment from across GCC, Asia and Europe. Emirates Islamic and Standard Chartered Bank were the Joint Global Coordinators, Joint Lead Managers and Bookrunners for the transaction while Al Hilal Bank, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, HSBC, Maybank and Noor Bank acted as Joint Lead Managers and Bookrunners.