DIB launches first sukuk

Dubai Islamic Bank (DIB) has launched its first Islamic sukuk bond.

DIB issued the $750 million sukuk through a special-purpose vehicle registered in the Cayman Islands. It will be listed on the Dubai International Financial Exchange and the London Stock Exchange - the first sukuk to be listed on both exchanges. Barclays Capital, Citigroup Global Markets and Standard Chartered Bank were joint lead managers on the deal.

The bond will mature in 2012. As an Islamic product, it does not technically have a coupon - interest is regarded as contrary to sharia - but it will pay a "periodic distribution" of Libor plus 33 basis points.

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