UAE bank to issue 5 bln USD Islamic bonds
25/9/2008 17:09
Dubai Bank of the United Arab Emirates (UAE) is planning to issue
medium-term Islamic bonds worth US$five billion in a bid to shore up its capital
reservoir, local newspaper Khaleej Times reported today.
The
multi-billion-dollar Sukuk, or known as Islamic bonds, is part of Dubai Bank's
strategy to put in place a more efficient capital structure through broadening
and diversifying its funding streams for its continued growth and expansion
activities, according to the report.
The Sukuk will be listed on both the
London Stock Exchange and the Dubai International Financial Exchange.
"This
is a historic milestone for Dubai Bank, as we prepare to fund an aggressive plan
for growth and expansion in retail and corporate Shariah-compliant banking
services across the region and beyond," the bank's CEO Salaam Al Shaksy was
quoted as saying.
"Sukuk issuance will support funding this strategy and
position us regionally as a leader in Shariah-compliant banking, placing us
amongst leading financial institutions," he added.
The Swiss financial
services company UBS and the Britain-based bank Standard Chartered have been
selected as arrangers for Dubai Bank's Sukuk program.
Banks in the UAE are
likely to face a lack of liquidity due to the impacts of Wall Street
meltdown.
The UAE Central Bank announced Monday that it would set up a
facility worth 50 billion dirhams (US$13.62 billion) for banks operating in the
Gulf country.
Xinhua
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