Dubai Islamic Bank (DIB) has announced the successful issuance of a USD 1 billion Sustainability-Linked Sukuk in the international Sukuk market. The Sukuk carries a profit rate of 4.572% per annum and has a tenor of five years.
This transaction marks a major milestone for DIB as its first Sukuk issued in a Sustainability-Linked format. It follows the Bank’s earlier distinction of being the first Islamic institution to establish a Sustainability-Linked Finance Facilities Financing (SLFFF) Framework. The issuance underscores DIB’s commitment to innovative Sharia-compliant financing structures and to supporting the UAE’s Net Zero 2050 Initiative.
Building on its Sustainable Finance Framework (SFF) and previous Sustainable Sukuk issuances, DIB’s new Sustainability-Linked Financing Sukuk represents a shift from traditional use-of-proceeds models to performance-linked sustainability impact.
The structure advances Islamic sustainable finance by directly linking impact to measurable, independently verified performance indicators. Through the Sustainability-Linked Financing Sukuk (SLFS), investor funds will be allocated to a diversified portfolio of general corporate-purpose sustainability-linked financing for clients who have committed to specific, measurable sustainability KPIs.
DIB continues to embed sustainability, responsible finance, and ESG principles at the heart of its long-term strategy. The Sustainability-Linked Financing Framework underwent a detailed review and received a Second-Party Opinion from Institutional Shareholder Services (ISS), confirming alignment with international standards and global best practices for Sustainability-Linked Sukuk.
The issuance received exceptionally strong demand, with the orderbook reaching USD 2 billion—an oversubscription of two times. Over 80 institutional investors from Europe, Asia, and the Middle East participated.
Geographically, 67% of the Sukuk was allocated to MENA investors, while Asia received 20%—the highest Asian allocation ever achieved in a DIB public Sukuk issuance. The remaining 13% went to investors in the UK, Europe, and other global markets. By investor type, banks and private banks accounted for 77% of allocations, fund managers 17%, and insurance firms, pension funds, and sovereign wealth funds together received 6%.
DIB began marketing the issuance on Monday, 10 November, holding several investor calls to present its 9M 2025 performance. The two-day virtual roadshow proved highly effective despite a busy primary market with multiple concurrent offerings. Strong investor interest enabled the Bank to open the orderbook on Wednesday, 12 November with Initial Price Thoughts at 120 basis points over U.S. Treasuries.
The orderbook rapidly grew to USD 2 billion, allowing final pricing to tighten to 90 basis points over U.S. Treasuries, resulting in a profit rate of 4.572% per annum.
Dr. Adnan Chilwan, Group Chief Executive Officer of DIB, commented “This Sukuk issuance is a defining step in our sustainability journey and a clear reflection of the strong confidence international investors continue to place in DIB, in the UAE’s solid credit fundamentals and in the strength of our long-term strategy. As the world’s first Islamic bank, our responsibility has always extended beyond offering compliant structures. It is to lead with purpose and to demonstrate how Islamic finance can deliver measurable and responsible impact that is transparent, independently assured and aligned with national priorities.
This Sustainability-Linked Sukuk reflects that progression. It moves us from intention to performance and reinforces our commitment to embedding long-term sustainability outcomes across our business and within the wider Islamic finance ecosystem. The depth and quality of global participation confirms that the market increasingly values institutions anchored in faith-based integrity, disciplined execution and a clear sustainability vision.
DIB will continue to advance this agenda with clarity and intent ensuring that our growth contributes to real economic value, real societal benefit and real impact.”
The Sukuk was issued under the DIB USD 12.5 billion Sukuk Programme, which is dual-listed on Euronext Dublin and Nasdaq Dubai. It fully aligns with the Sustainability-Linked Financing Framework, with Standard Chartered Bank serving as Sustainability Advisor.
Standard Chartered Bank (as billing and delivery bank and Sustainability Advisor), Arqaam Capital, Bank ABC, DIB, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, KFH Capital, KIB Invest, Maybank, QInvest, and Sharjah Islamic Bank acted as Joint Lead Managers and Bookrunners for the transaction.
(Inputs from WAM)
