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Bond Market News
DIB Raises $500 Million via PerpNC6 AT1 at 3.375%, Lowest Ever in The GCC
April 14, 2021
Dubai Islamic Bank (DIB) raised $500mn via a perpetual non-call 6Y (PerpNC6) AT1 Sukuk at a yield of 3.375%, an average of 31.25bp inside initial guidance of 3.625-3.75% area. The bonds are unrated and received orders over $2.7bn, 5.4x issue size. The AT1s’ first call date is on October 19, 2026 and is callable every six months thereafter. If not called, the first coupon reset occurs on April 19, 2027 to the prevailing 6Y US Swap Rate + 224.6bp.
The coupon of 3.375% is now the lowest among GCC AT1s, lower than the previous low on Saudi’s National Commercial Bank (NCB) that raised $1.25bn via a PerpNC6 Sukuk at 3.5% in January. Bookrunners for the deal included DIB, Emirates NBD, First Abu Dhabi Bank, HSBC and Standard Chartered Bank London. The new AT1s were priced tighter than its older AT1s – DIB’s 6.25% Perp callable in 2025 and their 4.625% Perp callable in 2026 currently yield 3.72% and 3.53% respectively. DIB’s 4.625% PerpNC6 was their most recently issued AT1 Sukuk, issued in November last year, prior to their latest one yesterday.
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