Dubai Islamic Bank closes debut $750m syndicated Islamic financing

02/09/2026 04:39 AST

Dubai Islamic Bank (DIB) has closed its first syndicated Islamic financing facility, raising $750 million through a three-year senior unsecured Commodity Murabaha term facility.

The transaction attracted around $1.2 billion in commitments, equivalent to about 1.6 times the facility size, reflecting strong demand from regional and international banks.

The Shariah-compliant bank said the facility was secured at competitive pricing despite a complex global market environment and continued geopolitical uncertainty in the region.

The transaction marks a new step in the UAE bank's funding strategy and diversifies its sources of institutional funding through a Shariah-compliant structure.

The strong participation from banks reflects continued confidence in the bank's credit profile, balance sheet strength and growth prospects, the bank said in a statement on Tuesday.

HSBC Bank Middle East, Mizuho Bank and Standard Chartered acted as initial mandated lead arrangers, bookrunners and coordinators for the transaction.

Dr Adnan Chilwan, group CEO of DIB, said the successful completion of the facility was an important milestone for the bank's funding strategy.

"The strength of demand and quality of participation, particularly against a complex market backdrop, speak to the resilience of our balance sheet, the strength of our credit profile and the disciplined approach that continues to guide our growth," he said.

Chilwan said the transaction would also help DIB diversify its funding base and deepen relationships with banking partners across global markets.

He added that the facility demonstrated the growing relevance of Shariah-compliant financing in international institutional markets.

The facility forms part of DIB's broader funding programme and will support the bank's long-term balance sheet and growth objectives.

Khaleej Times