Dubai Islamic Bank (DIB) shareholders approved a resolution to authorise the board to issue senior Sukuk or similar debt instruments.
Sunday 10, March 2019 BY KUDAKWASHE MUZORIWA
Dubai Islamic Bank shareholders have approved the Board of Directors to set up a $5 billion (AED 18.4 billion) Sukuk programme, as well as issue up to $2 billion in capital-boosting Islamic bonds.
In a statement, DIB shareholders said that they have authorised the Board of Directors to determine and agree on the timing, amount as well as offering mechanism, transaction structure and other terms and conditions of any issuance.
Additionally, the shareholders also agreed that the board can issue $1 billion each in tier-1 and tier-2 Sukuk, which will boost the bank's capital, at an appropriate time.
In 2018, DIB raised AED 5.1billion through a rights issue that received subscriptions in excess of AED 14 billion, with more than half of the demand coming from foreign investors.
Similarly, the lender announced the issuance of 1.6 billion additional shares at a price of AED 3.11 per share in April 2018 to boost its core capital, the deal which closed in May, was part of the bank’s strategy to pre-emptively create capacity to support its growth plans.