Emirates Islamic, a top Islamic financial institution in the UAE, recently announced the successful pricing of its $750 million sustainability sukuk. This marks the first sustainability sukuk issued in the UAE following the release of guidelines by ICMA, IsDB, and LSEG. The five-year issue saw strong demand from investors and was oversubscribed 2.8 times. The bank was able to tighten the profit rate to 5.431 percent per annum, reflecting a spread of 100 basis points over five-year US Treasuries. The sustainability sukuk was issued in compliance with Shariah rules and principles.
Farid Al Mulla, CEO of Emirates Islamic, expressed the bank’s commitment to sustainable Islamic financing and reducing its environmental impact. The issuance of this sustainability sukuk aligns with the UAE’s goal of achieving Net Zero by 2050. With a focus on promoting sustainable Islamic finance, Emirates Islamic aims to guide clients in making sustainable financial decisions. The bank’s dedication reflects its commitment to building a more sustainable future and supporting the global shift towards sustainable economy.
Emirates Islamic’s Deputy CEO, Mohammad Kamran Wajid, highlighted the significance of the sustainability sukuk in the bank’s sustainability journey. As a leading Shariah-compliant bank, Emirates Islamic remains dedicated to addressing climate change and providing customers with sustainable Islamic solutions that prioritize the environment and support a low-carbon economy. The bank’s commitment to sustainability is evident in its efforts to contribute towards a sustainable economy.
Vijay Bains, Group Chief Sustainability Officer at Emirates NBD, emphasized the bank’s commitment to introducing innovative ESG-linked financial solutions to drive the global shift towards sustainability. The issuance of the sustainability sukuk reinforces the group’s position as industry leaders in sustainable finance. Emirates NBD Capital and Standard Chartered Bank were joint global coordinators for the sukuk issuance, with other leading financial institutions also playing key roles in the transaction.
Emirates NBD Group has been actively involved in contributing to labelled sukuk guidance and initiatives led by ICMA, IsDB, and LSEG, alongside global stakeholders. In 2023, the bank made history by issuing a Dh1 billion public sukuk in the UAE, marking a significant milestone in the local currency market. The offering was oversubscribed 2.5 times, indicating strong confidence from Shariah-compliant investors in the dirham sukuk market. Emirates NBD’s continued efforts in sustainable finance demonstrate its commitment to driving positive change in the financial sector.
