Dubai Islamic Bank postpones Sukuk bonds amid coronavirus volatility


by   |  VIEW 860
Dubai Islamic Bank postpones Sukuk bonds amid coronavirus volatility

Dubai Islamic Bank, the 45-year-old financial services provider headquartered in Dubai, had cancelled a planned issuance of its US Dollar denominated Sukuk bonds, a bond similar to western finances that proffers pay offs in line with Islamic Sharia or religious laws on the basis of asset ownership while traditional bonds are subjected to debt obligations and interest, over rising market frets over coronavirus outbreak’s financial fallouts amid a tempestuous demand outlook, at least three sources familiar with the subject-matter had unveiled on Sunday, the 1st of March 2020, on condition of anonymity as the sources were not authorized to speak publicly over the issue.

In point of fact, Dubai Islamic Bank, the first Islamic Sharia-based lender across the globe and the largest borrower in Dubai, had been planning to raise as much as $750 million through its Sukuk bonds issuance scheduled to take place on February 26th, however, the lender had decided against an issuance at the eleventh hour and settled on a delayed issuance of its Sukuk or Islamic Sharia-based bonds.

Although, a spokesman for the largest Islamic bank in the UAE had declined to comment on an exact timeline for the Dubai Islamic Bank’s Sukuk issuance, one of the sources were quoted saying that the Dubai lender had still been lining up lenders to arrange an issuance of its Islamic bonds.