DUBAI: Dubai Islamic Bank (DIB) announced on Nov. 14, 2025, that it has successfully priced a $1 billion debut Sustainability-Linked Sukuk. The five-year issuance carries a profit rate of 4.572% per annum.
The sukuk marks DIB’s first use of a sustainability-linked structure, which ties the financial terms directly to the bank’s performance on pre-agreed environmental, social and governance (ESG) targets. This move represents an evolution from its previous sustainable sukuk, which were based on the use of proceeds for specific green projects.
The offering was more than two times oversubscribed, with the order book peaking at $2 billion. It attracted over 80 institutional investors from Europe, Asia, and the Middle East. Allocation was 67% to the MENA region, 20% to Asia—reportedly DIB’s highest Asian allocation for a public sukuk—and 13% to the UK, Europe, and other international markets.
“This sukuk issuance is a defining step in our sustainability journey,” said Dr. Adnan Chilwan, Group Chief Executive Officer of DIB. He added that it reflects international investor confidence and demonstrates how Islamic finance can deliver “measurable and responsible impact.”
The bank’s Sustainability-Linked Financing Framework received a second-party opinion from Institutional Shareholder Services (ISS), confirming its alignment with international standards. The sukuk is a drawdown under DIB’s $12.5 billion Sukuk Programme and is dual-listed on Euronext Dublin and Nasdaq Dubai.
Standard Chartered Bank acted as the sustainability advisor and joint lead manager for the transaction, which involved several other financial institutions as bookrunners.
Established in 1975, DIB is the largest Islamic bank in the UAE by assets.
