DIB takes lead on AED 25 billion of deals

The figures confirm the bank's position as the leading Islamic finance institution and, through its activities, one of the most effective conduit for encouraging foreign direct investment into the emirate. This has been apparent in its ability to raise funds from the international capital markets for huge projects such as the Government of Dubai Department of Civil Aviation's (DCA) US$1.2 billion Sukuk.

Saad Abdul Razak, DIB's Chief Executive, said: "DIB's funding activities have certainly contributed to the rapid economic growth of the UAE and been a vital factor throughout the region.

"We believe that it is because of the growing recognition of our leading position as an Islamic financier that companies come to us for fundraising and increasingly demand that we take the lead in the action, mandating DIB as lead manager and arranger. Equally, other financial institutions - even the largest and most prestigious in the world are happy to act as our partners, either as co-lead, underwriters or subscribers to the issue.

"DIB's brand is strong and getting stronger. We know this not only from the volume of deals we are handling but also those we have been approached to take on but were unable to.

"The UAE is increasingly regarded as a financial hub and an Islamic finance centre. We are playing our part in establishing its presence and first class reputation. Our record in managing and leading deal has been right across economic sectors and even countries and regions."

DIB's market leading position was confirmed last year by specialist banking magazine Euromoney, which ranked it the top Islamic finance lead arranger and manager based on its deal record around the world.

"The bank has been instrumental in providing innovative structural financing solutions geared to the needs and requirements of large projects and institutions in the UAE and the region. DIB's activities have helped government, semi-government and private institutions find the funding they need at a competitive cost and this has certainly contributed to the development of the financial market in the country and the region.

"The role of Islamic funding is no longer limited to certain sectors and projects. DIB has focused on financing capital intensive sectors such as power, airlines, transportation, telecommunication, and real estate through common Ijara facilities at both the local and regional level."

The quality and size of DIB's deal making has made it the Islamic partner of choice for many of the leading global financial institutions and banks that have been involved in some of its funding exercises.

Aref Kooheji, DIB's Executive Vice President of Investment and Corporate Banking, said: "The bank has been very influential in getting the Islamic Sukuk market off the ground. The US$1.2 billion DCA issue was particularly important since it raised the profile of the bank and of Islamic finance and confirmed that both were more than suitable to play a leading role in even the biggest deals.

He added: "DIB continues its efforts to develop the Sukuk. This could not have been better demonstrated than through our partnership with the Dubai Metals & Commodities Centre (DMCC). This led to DIB's appointment as the Mandated Lead Arranger and Joint Lead Manager for its gold-related Sukuk, the first UAE treasury instrument of its kind to be rated by credit ratings agency Standard and Poor's."

In addition to participating in local and international Sukuks, DIB was involved in a series of Ijarah financing deals, one of the most prestigious of which was Nakheel's US$350 million syndication for which the bank was lead manager and arranger.

DIB was also the sole underwriter for the AED 3.59 billion credit facilities required by the joint venture that has been awarded the contract for the second phase of the Dubai International Airport expansion project.

On a regional level, DIB was appointed one of the Lead Arrangers for the US$530 million Islamic finance tranche for Qatar Gas II. They were also able to take their expertise abroad and participate in the Pakistani Government US$600 million Sukuk, which raised US$1.2 billion. This amply demonstrated that the bank is a true international player.

Mr. Kooheji said: "DIB's success in structuring and executing a variety of substantial deals has played a part in encouraging other institutions to work with the bank. Those deals showed the benefits of being able to lock into the bank's access to diversified and flexible sources of financing that offer competitive costing.

"The result is that DIB has won a series of mandates to arrange and manage financing deals with a gross value in excess of AED 25 billion, some of which will be announced shortly."

Mr. Kooheji concluded: "DIB has largely contributed to channel foreign investment to the local market and played a major role in developing local projects."