Emirates Islamic closes $250m Sukuk issuance


Emirates Islamic Bank recently announced that it has successfully closed a US$ 250 million tap of its earlier US$ 750 million 5-year Sukuk issued in May 2016.

This is under the bank’s $ 2.5 billion Certificate Issuance Programme. The tap generated an order book of $ 706 million, reflecting the solid regional and international investor confidence in the bank.

Long-Term Issuer Default Rating

Earlier this month, ratings agency Fitch affirmed Emirates Islamic’s ‘A+’ rating, assigning the bank a Long-Term Issuer Default Rating (LT IDR) of ‘A+’ with a Stable Outlook, Short-Term IDR (ST IDR) of ‘F1’, and a Viability Rating (VR) at ‘bb-‘. The ratings agency also affirmed the bank’s Support Rating of ‘1’.

Recorded H1 net profit

Emirates Islamic reported an Dh137 million net profit in H1 2016, with an 11% increase in total income (net of customers’ share of profit) to Dh1.23 billion compared to the total income (excluding one offs) for the same period last year. The bank’s total Assets were at Dh 57.2 billion, up by 8% from end 2015 and customer deposits increased by 6.2% from end 2015 to Dh41.8 billion.

The tap was priced at 5Y Mid-swaps +170bps and attracted investment from across GCC, Asia and Europe. The Joint Lead Managers for the transaction were Bank ABC, Dubai Islamic Bank, EMCAP and Standard Chartered Bank.

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