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Emirates Islamic launches a USD 750 million Sukuk fully aligned with ICMA guidelines. · The 5-Year Sukuk is expected to carry a 5.431 per cent profit rate per annum, at a spread of 100 bps over US Treasuries

Emirates Islamic, a leading Islamic financial institution in the UAE, has announced the successful pricing of its first-ever USD 750 million Sustainability Sukuk, marking a significant milestone in both the bank’s sustainable journey and the Islamic finance industry.

This issuance is the first Sustainability Sukuk from the UAE following the April 2024 release of the International Capital Market Association (ICMA), Islamic Development Bank (IsDB), and London Stock Exchange Group (LSEG) Guidance on Green, Social, & Sustainability Sukuk.

The 5-year Sukuk saw robust demand from investors across different regions, being oversubscribed 2.8 times. The strong order book, which exceeded USD 2.10 billion, allowed the bank to tighten the profit rate to 5.431 percent per annum, at a spread of 100 basis points over 5-year US Treasuries. The Sukuk was issued in line with Emirates NBD Group’s Sustainable Finance Framework and complied with Shariah rules and principles as determined by Emirates Islamic’s Internal Shariah Supervision Committee.

Farid Al Mulla, CEO of Emirates Islamic, stated: “We are pleased to launch our first-ever 5-Year USD 750 million Sustainability Sukuk, reaffirming our commitment to sustainable Islamic financing. In line with our vision to be a pioneering Shariah-compliant bank, Emirates Islamic is committed to reducing its environmental impact, aligning with the UAE Net Zero by 2050 initiative. We are dedicated to promoting sustainable Islamic finance and guiding our clients in making sustainable financial decisions, building a more sustainable future.”

Mohammad Kamran Wajid, Deputy CEO of Emirates Islamic, added: “We are proud to conclude our first sustainability Sukuk, marking a significant milestone in our sustainability journey. As a leading Shariah-compliant bank in the UAE, we are committed to addressing climate change by offering sustainable Islamic solutions that support a low-carbon economy.”

Vijay Bains, Group Chief Sustainability Officer and Group Head of ESG at Emirates NBD, noted: “The issuance of our first Sustainability Sukuk exemplifies our ongoing commitment to introducing innovative ESG-linked financial solutions that drive the global shift towards a sustainable economy. It also strengthens our Group’s dedication to becoming industry leaders in sustainable finance.”

Emirates NBD Capital and Standard Chartered Bank acted as Joint Global Coordinators, with Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank PJSC, First Abu Dhabi Bank PJSC, and The Islamic Corporation for the Development of the Private Sector (ICD) serving as Joint Lead Managers and Joint Bookrunners. Emirates NBD Capital was the sole Sustainability Structuring Agent.

Emirates NBD Group has actively contributed to the Working Group that developed the labelled Sukuk Guidance, collaborating with ICMA, IsDB, LSEG, and other key global stakeholders.

In 2023, Emirates Islamic made history in UAE banking by issuing an AED 1 billion public Sukuk, the first of its kind, which was oversubscribed 2.5 times. This highlighted the strength and investor confidence in the local currency Sukuk market, reinforcing the bank’s commitment to deepening and promoting liquidity in the dirham Sukuk market.

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