ALBAWABA - Dubai National Bank announced the success of the pricing of unsecured, outstanding sukuk for Al Rajhi Bank, amounting to $1 billion, according to the United Arab Emirates' news agency, WAM.
The five-year sukuk, with a 4.774 percent buyback yield, received strong demand, attracting orders exceeding $3.75 billion.
Al Rajhi Bank, the world's largest Islamic bank in terms of assets and market value, reduced its profit rate by 40 basis points compared to US Treasury bonds for five years to 110 basis points compared to the original pricing rate of 150 basis points.
Middle Eastern investors accounted for 49 percent of the total issuance, with strong demand also seen from prominent international investors.
