Emirates Islamic, a leading UAE Islamic financial institution, has announced the successful pricing of its $750 million first ever Sustainability Sukuk, marking a milestone in the bank’s sustainable journey, and Islamic finance industry.

 

This is the first Sustainability Sukuk issued out of the UAE following the release of the International Capital Market Association (ICMA), the Islamic Development Bank (IsDB) and London Stock Exchange Group (LSEG) Guidance on Green, Social & Sustainability Sukuk in April 2024. 

 

The 5-year issue witnessed robust demand from investors across different regions and was oversubscribed 2.8 times. The strong order book, which exceeded $2.10 billion, allowed the bank to tighten the profit rate to 5.431% per annum, at a spread of 100 basis points over 5-year US treasuries. This Sustainability Sukuk was issued in line with Emirates NBD Group’s Sustainable Finance Framework and in compliance with Shariah rules and principles as determined by Emirates Islamic’s Internal Shariah Supervision Committee. 

 

Sustainable Islamic financing

Farid Al Mulla, Chief Executive Officer of Emirates Islamic, said: “Our first ever 5-Year $750 million Sustainability Sukuk reaffirms our commitment to sustainable Islamic financing. In line with its vision to be the pioneering Shariah-compliant bank for customers, people, and communities, Emirates Islamic is committed to reducing its environmental impact, in line with the UAE Net Zero by 2050. 

 

“We remain committed to promoting sustainable Islamic finance and supporting and guiding our clients in making sustainable financial decisions, reinforcing our dedication to building a more sustainable future.”

 

Mohammad Kamran Wajid, Deputy Chief Executive Officer of Emirates Islamic, added: “As one of the leading Shariah compliant banks in the UAE, Emirates Islamic remains committed to addressing climate change by offering customers sustainable Islamic solutions that prioritise the environment and support a low-carbon economy. 

 

Core strategic pillar

“The bank has always embraced sustainability as a core strategic pillar, along with providing customers with the best experience and superior banking solutions. The announcement also contributes to the Emirates NBD Group-wide sustainability efforts as a signatory of the UAE Banking Federation pledge to mobilise AED1 trillion ($270 billion) in sustainable finance by 2030.”

 

Vijay Bains, Group Chief Sustainability Officer, Group Head of ESG at Emirates NBD, said: “The issuance of our first Sustainability Sukuk exemplifies our ongoing commitment to introducing tailored and innovative ESG-linked financial solutions that will drive the global shift towards a sustainable economy. It also strengthens the Group’s commitment to becoming industry leaders in sustainable finance.” 

 

Emirates NBD Capital and Standard Chartered Bank were Joint Global Coordinators, along with Abu Dhabi Islamic Bank PJSC, Dubai Islamic Bank PJSC, First Abu Dhabi Bank PJSC and The Islamic Corporation for the Development of the Private Sector (ICD) as Joint Lead Managers and Joint Bookrunners. Emirates NBD Capital acted as sole Sustainability Structuring Agent.--TradeArabia News Service