Outstanding Trust Certificates are purchased by Dubai Islamic Bank

Dubai Islamic Bank is the largest Islamic bank in the UAE. it is one of the fully fledge Islamic bank which is now on the fastest growing economic sectors comprising of more than 400 institutions. This customer centered organization provides comprehensive solutions to all the financial needs. Recently trust certificates have been purchased by this bank at 88 percent face value through the cash tender offer. This transaction demonstrates that the Dubai Islamic Bank hold on a strong position from liquidity point of view. In addition its healthy repayment capability is also being categorized. The transaction was settled on May 21, 2009. The Chief of Treasury at DIB, Mohammed Saleem said “This transaction is a testament of the market's confidence in DIB's future earning capabilities and its growth strategy.”

Through this transaction DIB has become the first Islamic bank to purchase its outstanding trust certificates. A significant percentage of investors had shown interest and decided to hold the certificates demonstrating the continuing confidence of investors. A rating of A1 /A- has been given by Moodys and S&P to DIB. The bank continues to be in a positive liquidity position and a sufficient funding is being maintained to retire the facility earlier than the maturity. Dubai Islamic Bank successfully established competitive cash tender offer for trust certificates thereby, a favorable offer has been created for investors and moreover, it’s for realizing net gain for this Islamic bank.

In the first quarter of the year 2007, the five year sukuk facility was launched through the inaugural sukuk certificates. For the cash tender offer DIB Capital, Barclays Capital and Standard Charted Bank acted as lead managers for this cash tender offer.