Dubai Islamic Bank (DIB) has completed the world's first sukuk buyback, purchasing US$50.6 million of the 5-year US$750 million sukuk issued by DIB Sukuk Company in 2007. This buyback provides encouragement to issuers who are considering whether to take advantage of purchasing their sukuk if it's trading materially below par.
DIB Capital, Barclays Capital and Standard Chartered Bank acted as dealer managers and Citibank acted as tender agent. The Lovell's team advised DIB and was led by Rahail Ali, Lovells' Global Head of Islamic finance.
This sukuk buyback is a first because the closest the Islamic capital market has come to an unscheduled full or partial exit for sukuk holders was the Aabar Petroleum consent solicitation for unscheduled early redemption which closed in July 2008.