Dubai Islamic Bank Offers Auto Finance At Profit Rates Starting From 4.50 Per Cent

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, announced that it is offering auto finance at profit rates starting from just 4.50 per cent p.a. Al Islami Auto Finance is available for up to 72 months, with a minimum monthly salary requirement of AED 3,000. No down payment or salary transfer is required to avail of this offer, which covers both new and pre-owned vehicles.

This attractive financing demonstrates the bank’s generally positive outlook as well as its strong liquidity position, and is in line with its expansion plans announced earlier this year. By the end of this year, DIB will open 10 new branches, expanding its nationwide network to 64 branches, further strengthening its presence across the UAE, while also offering an overall enhanced customer experience.

“As the provider of auto finance for one in every three cars financed in the UAE, Al Islami Auto Finance has long been the leading solution of choice for consumers here,” said Dr. Adnan Chilwan, Chief of Retail and Business Banking, DIB. “In today’s highly competitive market, the bank has recognised the need for flexible auto finance options – which is why we are very pleased to announce this extremely attractive offer that provides a host of valuable benefits.”

DIB has the country’s largest team of qualified auto finance professionals, many of whom are available directly at dealer locations. The bank offers an unmatched range of Sharia-compliant auto financing solutions – along with value-added services such as insurance finance and service contract finance – at extremely competitive profit rates, catering to a broad cross-section of the UAE population.

Dubai Islamic Bank Purchases Outstanding Trust Certificates Through Cash Tender Offer

Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, announced today that it has purchased US$50.6 million from the partial cash tender offer to retire US$200 million of outstanding sukuk certificates, which was announced in May 2009. DIB purchased the trust certificates at 88 per cent of the face value. The transaction was settled on May 21, 2009.Through this transaction, DIB has become the first Islamic bank to purchase its outstanding trust certificates through a cash tender offer. The transaction also demonstrates DIB’s strong liquidity position and the bank’s healthy repayment capability and surplus funding. Demonstrating the continuing investor confidence in DIB, a significant percentage of investors have decided to hold the certificates. DIB is rated A1/A- by Moodys and S&P.“This transaction is a testament of the market’s confidence in DIB’s future earning capabilities and its growth strategy,” Mohammed Saleem, Chief of Treasury at DIB, said. “Our investors have reiterated their comfort in their ongoing exposure to DIB, and this is a major validation of our financial strength and the franchise value.“Taking into consideration recent market developments, DIB successfully established a competitive cash tender offer for the trust certificates, creating a favourable offer for investors as well as realising a net gain for DIB. The bank continues to be in a positive liquidity position and maintains sufficient funding to retire the facility earlier than maturity. This marks another successful transaction for DIB, and further validates our business strategy amidst challenging conditions.”The five-year sukuk facility was launched in the first quarter of 2007 through its inaugural US$ 750million Sukuk Certificates. Barclays Capital, DIB Capital and Standard Chartered Bank acted as the lead managers for the cash tender offer.