Emirates Islamic Bank’s green sukuk orders hit $1.9bn

The Islamic unit of Emirates NBD, Dubai’s largest lender, has launched a $750 million green sharia-compliant sukuk.

The indicative price for Emirates Islamic Bank’s (EIB) 5-year sustainability sukuk was set at 100 basis points over US Treasuries, Reuters reported, citing a document from an arranging bank. 

The issuance, part of EIB’s $2.5 billion certificate issuance program, attracted orders exceeding $1.9 billion, the report said.

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Sukuk are sharia-compliant bonds that were developed as an alternative to conventional bonds, which are not considered permissible by many Muslims as they pay interest and may finance businesses involved in activities not allowed under Islamic law.

Saudi Arabia’s Alrajhi Bank this month completed its $1 billion sukuk after receiving $3.5 billion in subscriptions from local and international investors. 

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Fitch Ratings said the total debt capital market in the GCC is likely to cross $1 trillion this year, after reaching $940 billion in the first quarter of 2024.

More than a third of GCC debt issued last year was in the form of sukuk, it said.