Dubai’s Emirates Islamic Bank Says Its $750 Million Sukuk Got 2.1 Times More Orders Than Offered

Emirates Islamic sold $750 million worth of sukuk (Islamic bonds), and there was more demand than expected — 2.1 times more. Over 100 investors showed interest, and many of them were new, the company said.

Emirates Islamic’s sukuk

Emirates Islamic’s sukuk (Islamic bonds) received strong interest, with orders totaling over $1.6 billion. The bank said 80% of the sukuk went to investors from the region, while the rest went to international investors.

More than 100 investors took part, including some who invested in the bank’s sukuk for the first time. This shows that Emirates Islamic is becoming better known in global financial markets.

Because of the high demand, the bank was able to lower the extra cost (called the spread) by 30 basis points from the original level. The final spread was 95 basis points above five-year US Treasury bonds, with an annual return (coupon rate) of 5.059%.

The bank said this important sukuk issue supports its growth plans and helps the Islamic finance industry continue to grow.

The sukuk was managed by Emirates NBD Capital, HSBC, Mashreqbank, Dubai Islamic Bank, Standard Chartered Bank, and Sharjah Islamic Bank.

Islamic finance

Emirates Islamic CEO Farid AlMulla said that Islamic finance is growing strongly and now offers more advanced products and services.

Buyout offer

Earlier this month, Emirates Islamic said it agreed to an offer from its main shareholder, Emirates NBD, to buy the remaining shares. Emirates NBD already owns 99.89% of the bank, which equals 5.42 billion shares.

Emirates NBD will buy the rest of the shares at $3.23 (AED 11.95) per share. As part of the deal, Emirates Islamic’s shares will be removed from the stock exchange and registered under Emirates NBD’s name.

Earnings report

Emirates Islamic reported a 32.5% increase in its profit for 2024, reaching $760 million (AED 2.8 billion). Its revenue also grew to $1.5 billion (AED 5.4 billion) in 2024, up from $1.3 billion (AED 4.8 billion) the year before.

Published: 24th March 2025

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