Dubai Islamic Bank plans to sell AT1 Islamic bonds

AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature but issuers can call them after a specified period

DUBAI – Dubai Islamic Bank, the United Arab Emirates’ largest Islamic lender, plans to tap the international debt markets with U.S. dollar-denominated Additional Tier 1 (AT1) sukuk, or Islamic bonds, as soon as this week, two sources said on Monday.

AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature but issuers can call them after a specified period.

DIB, which raised $1 billion via AT1 sukuk in November, did not immediately respond to a request for comment.

Other Gulf banks that have issued AT1 bonds or sukuk this year were Qatar’s Ahli Bank and Commercial Bank, Kuwait’s Boubyan Bank and National Bank of Kuwait.

(Reporting by Yousef Saba; Editing by Alison Williams)

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