Dubai Islamic Bank has successfully expanded its presence in the global sukuk market by issuing sustainability-linked sukuk worth $1 billion, which are priced with a profit rate of 4.572% annually over a 5-year term.
This issuance marks a significant milestone as it is the bank’s first foray into sustainability-linked instruments. This follows the bank’s prior achievement as the first Islamic financial institution to introduce a sustainability-linked financing framework. The new issuance reaffirms Dubai Islamic Bank’s commitment to offering innovative financial solutions and supporting sustainability efforts.
The recent issuance of sustainability-linked sukuk represents a pivotal shift from traditional revenue-generating models to performance-driven frameworks. This new structure enhances sustainable Islamic financing by directly linking impact to measurable and independently verified performance objectives.
With the launch of the sustainability-linked financing sukuk (SLFS), the bank will direct investor capital towards a diverse portfolio of sustainability-related financings, aligned with broader corporate goals, and appealing to clients dedicated to achieving key sustainability performance indicators.