Emirates Islamic Bank achieves best pricing for a Sukuk issue by an Islamic bank

The road show that covered countries in Asia, Europe and the GCC unveiled strong interest in the Sukuk. This was emphasized in the amount of subscription received which exceeded US$500 million. As per the EIB Sukuk issuance program, only US$ 350 million is required at this stage, and Investors have been allocated participation in this tranche accordingly.

Subscription for the Sukuk came predominantly from Europe (34%) and the Far East (38%). The five-year Sukuk issue was priced at LIBOR + 30 bps and this makes it the best-priced Sukuk issue made so far by an Islamic bank in the UAE.

Lead Arrangers for the issue were EIB and Standard Chartered Bank, which also served as Book runner.

Commenting on the success of the issue: Mr. Ebrahim Fayez Al Shamsi, Chief Executive Officer of EIB said:

"I congratulate the teams of Emirates Islamic Bank and Standard Chartered Bank who have worked very hard to make this issuance the best priced of all Islamic commercial banks Sukuk issues to date. This Musharaka Sukuk issue has proven irresistible to investors and the underlying guarantee of Emirates Bank International is a key factor behind its high rating of A1/A. The proceeds will enable Emirates Islamic Bank to move forward and support our customers with competitive Shari'a compliant financial products in this dynamic and vibrant economy."

Mr. John Eldredge, General Manager - Emirates Bank Group Treasury, said: "The order book included many new investors to the Emirates Bank Group. Banks accounted for 64%, Fund Managers 18%, Pension Funds 4% and others 13%. Such diversity of interest reaffirmed our strategic initiative to position ourselves in global financial markets, as we reach out to new investors through a broad range of products."

Deepak Kohli, Global Head of Debt Capital Markets at Standard Chartered, said: "We are pleased to be associated with this landmark transaction by Emirates Islamic Bank. The diverse distribution achieved on this issue clearly demonstrates the growing acceptance of Sukuk as a funding tool, and the strong interest from global investor pockets. Standard Chartered continues to be strongly committed to the development of Islamic and Middle Eastern Capital Markets".

Afaq Khan, CEO of Standard Chartered Saadiq, the Islamic division of Standard Chartered, said: "Standard Chartered is pleased to be associated with this successful debut Sukuk issue for EIB. The worldwide Islamic banking industry is growing rapidly and Standard Chartered is leading the way in this market".