Dubai Islamic Bank Repays $750mln Bonds

Dubai Islamic Bank has announced the repayment of a $750 million, five-year Islamic bond which matured on March 22 using its own resources.

The sukuk, which was issued by Dubai’s largest sharia-compliant bank in March 2007, was then oversubscribed by three times, with 45 percent allocation to the Middle East, 25 percent to Asia and 30 percent to Europe.

“The ability to repay from our own resources without the need to refinance is testament to the robust fundamentals we have built over the past years,” said Adnan Chilwan, deputy chief executive.

“We will continue to explore potential opportunities to expand our funding sources in the future.”

The bank posted a 25 percent rise in 2011 net profit to 1.01 billion dirhams.

According to Reuters, Tamweel, a mortgage finance company majority-owned by DIB, recently issued a $300 million, five-year sukuk.