Emirates Islamic Announces Major Sustainable Sukuk Offering

DUBAI, United Arab Emirates - May 22, 2024 - Emirates Islamic, a leading Islamic financial institution in the United Arab Emirates, has achieved a significant milestone in its commitment to sustainable finance with the successful issuance of a US$750 million five-year senior unsecured sustainability sukuk. This landmark offering marks a major step forward for Emirates Islamic's role in financing environmentally friendly projects and supporting the UAE's transition towards a greener economy.

The sustainability sukuk structure adheres to Emirates Islamic's Sustainable Finance Framework, a comprehensive set of guidelines designed to channel investments towards initiatives and projects that generate positive environmental and social impacts. The proceeds from the sukuk will be used to finance or refinance projects that align with the framework's eligibility criteria, such as renewable energy, energy efficiency, green buildings, sustainable waste management, and socially responsible projects that promote positive social outcomes.

This issuance by Emirates Islamic is not only strategically important for the bank itself, but it also serves as a significant development for the Islamic finance sector at large. The substantial US$750 million value makes it the largest issuance of its kind in the international capital markets by a GCC bank since February 2022. This demonstrates the growing appetite from investors for Sharia-compliant financial instruments that promote environmental and social responsibility.

The issuance process involved a comprehensive marketing exercise undertaken by Emirates Islamic. The bank updated potential investors on its positive financial performance and the key features of its Sustainable Finance Framework. This transparency helped to generate strong interest from a diverse group of investors across Europe, Asia, and the Middle East.

The successful issuance of this sustainability sukuk underscores Emirates Islamic's unwavering commitment to advancing sustainable finance within the UAE and beyond. By offering Sharia-compliant financial products that prioritize environmental and social well-being, Emirates Islamic is contributing to the creation of a more sustainable and responsible financial system for the future.

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