Dubai Islamic Bank is issuing a perpetual bond to address its Basel II Tier 1 (13.9 per cent) and the amortisation schedule of existing Tier 2 bonds (five per cent, 20 per cent amortisation p/a until maturity.
The bank may buy back existing Tier 2 bonds from the Ministry of Finance – several UAE banks including NBAD, Emirates NBD, ADCB, RAKBANK and Union National Bank have been buying back Tier 2 debt. The perpetual bond should boost DIB’s Tier 1 ratio to 18.8 per cent, according to analysts at Arqaam Capital………………………………………..Full Article: Source