Press Release

JCR-VIS finalizes rating of Basel 3 compliant Additional Tier 1 Sukuk by Dubai Islamic Bank Pakistan Limited

Karachi, January 09, 2019: Upon review of final signed legal documents, JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned finalized rating of ‘A’ (Single A) to Dubai Islamic Bank Pakistan Limited’s (DIBPL) proposed Basel 3 compliant Additional Tier-1 Sukuk. Outlook on the assigned rating is ‘Stable’.

DIBPL has issued privately placed/ OTC Listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible Shariah compliant Sukuk amounting up to Rs. 3.12b. The issue proceeds will contribute towards the bank’s Additional Tier-1 (ADT-1) capital and will be utilized towards enhancement of the bank’s business operations. DIBPL’s ADT-1 instrument will rank ahead of claims of ordinary shareholders but below the bank's senior creditors, including depositors. Ratings also reflect relative risk of the ADT-1 instrument including profit servicing from only earnings for the year, conversion feature in the event of pre-specified trigger events, lock-in clause and point of non-viability in terms of regulatory requirements.

JCR-VIS has assigned entity ratings of AA-/A-1 (Double A Minus/A-One) to DIBPL indicating high credit quality. The assigned ratings reflect the Bank’s sound asset quality indicators, strong & consistent profitability growth over the last three years and adequate liquidity and capitalization indicators. Ratings assigned to DIBPL incorporate sound profile of the sponsor, Dubai Islamic Bank (DIB), the largest Islamic bank operating in United Arab Emirates. DIB has been rated ‘A/A-1’ (Single A/A-One) on the international scale. Support from the parent has been witnessed in the past and JCR-VIS expects this support to continue going forward.

For further information on this rating announcement, please contact the undersigned (Ext: 201) or Mr. Talha Iqbal (Ext: 213) at 021-35311861-70 or fax to 021-35311872-3.

Javed Callea

Applicable rating criterion: Commercial Banks Methodology –March 2018

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited