DIB Raises $1B in Landmark Sustainability-Linked Sukuk

Dubai Islamic Bank (DIB) has successfully tapped the international Sukuk market, raising USD 1 billion through its first-ever Sustainability-Linked Sukuk. The five-year issuance carries a profit rate of 4.572% per annum, reflecting strong investor confidence in the bank’s innovative financing approach.

The Sukuk represents a shift from traditional use-of-proceeds models to a performance-linked structure, directly tying financing to measurable sustainability targets. Funds raised will support a diverse range of corporate projects with verified commitments to achieve pre-agreed sustainability KPIs, reinforcing DIB’s dedication to responsible finance.

This issuance builds on DIB’s earlier achievements, including the establishment of the Sustainability-Linked Finance Facilities Framework and prior Sustainable Sukuk offerings. The new structure advances Islamic sustainable finance by embedding ESG principles and impact measurement into financing, ensuring alignment with global best practices.

Investor demand was robust, with the orderbook peaking at USD 2 billion—double the issuance size. Participation spanned Europe, Asia, and the Middle East, with 67% allocated to the MENA region, 20% to Asia, and the remaining 13% to the UK and Europe. Banks and private banks accounted for the majority of subscriptions, followed by fund managers and institutional investors.

Marketing efforts began on 10 November, showcasing the bank’s 9-month financial performance and highlighting its sustainability commitments. The high-quality investor interest allowed final pricing to tighten to 90 basis points over US Treasuries.

The Sukuk was issued under DIB’s USD 12.5 billion dual-listed Sukuk Programme on Euronext Dublin and Nasdaq Dubai, with Standard Chartered Bank acting as Sustainability Advisor. The transaction involved leading regional and international banks including Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and others.

The deal signals a growing global appetite for sustainability-linked Islamic finance instruments, setting a benchmark for future Sukuk structures focused on impact-driven outcomes.