The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Best Islamic bank in the Middle East: Dubai Islamic Bank

Pushing beyond the boundaries


The league tables reveal where Dubai Islamic Bank (DIB) achieved its greatest success last year. It ranked only behind Malaysia’s CIMB as the biggest bookrunner of Islamic bonds in 2006, according to Ifis, a leading data provider. Admittedly this is based on lead managing only three transactions but two of those were Dubai Ports’ $3.5 billion pre-IPO convertible bond and Nakheel’s $3.52 billion convertible sukuk. Both Dubai Ports and Nakheel are subsidiaries of Dubai World, a quasi-government holding company. Nakheel is the property arm of Dubai World. The transactions are the biggest and second-biggest sukuks.

Critics will argue that both deals were effectively government mandates but DIB, along with Barclays Capital, which was co-lead manager on the two transactions, still had to execute them well. In that respect they succeeded. The Nakheel bond, for example, was originally marketed to raise $2.5 billion but the deal size was increased after demand reached $6 billion. About 100 investors participated in the transaction, of which 40% were from the Middle East and 40% from Europe.

The main difference between the Nakheel bond and the Dubai Ports deal is that the latter involved bonds compulsorily converting into shares if the company lists whereas holders of the Nakheel bond have the option to buy shares in an IPO at a discount.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree