Press Release
VIS assigns Positive Outlook to Basel 3 Compliant Tier-2 (Sukuk 3) Instrument of Dubai Islamic Bank Pakistan Limited
Karachi, June 30, 2025: VIS Credit Rating Company Limited (VIS) has maintained the rating assigned to Sukuk 3 (Basel 3 Compliant Tier-2 instrument) of Dubai Islamic Bank Pakistan Limited (‘DIBPL’ or the ‘Bank’), at ‘AA-’ (Double A Minus). The long-term instrument rating of ‘AA-’ denotes high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Outlook on the assigned ratings has been changed to ‘Positive’ from ‘Stable.’ The previous rating action was announced on June 27, 2024.
In December 2022, the Bank raised Rs. 4.0 billion by issuing privately placed, unsecured, and subordinated Shariah compliant Sukuk based on Mudaraba. The profit is payable semi-annually in arrears. The Sukuks are redeemable with a Bullet payment at the end of the tenth year. However, the Bank can call the Sukuk any time after five years from the issue date, provided it has prior approval from the State Bank of Pakistan (SBP). Additionally, the Sukuks are subject to Lock-in-Clause, and Loss Absorbency Clause as per the ‘SBP’s Instructions for Basel 3 Implementation in Pakistan.’
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Financial Institutions
https://docs.vis.com.pk/Methodologies%202024/Financial-Institution-v2.pdf
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf