Dubai Islamic eyes 5-year sukuk

Dubai, May 21, 2012

Dubai Islamic Bank has released initial price guidance for a new five-year benchmark-sized Islamic bond, or sukuk, arranging banks said on Monday.

Indicative pricing for the sukuk was given at 375 basis points over midswaps. The borrower wraps up roadshows in London on Monday, and execution of the deal is expected on Tuesday, arrangers said.

Benchmark is usually understood to mean at least $500 million.

Deutsche Bank, Emirates NBD, HSBC , National Bank of Abu Dhabi and DIB itself are arranging the deal.

An eventual sukuk issue is expected to benefit from a strong local bid as well as demand for Islamic assets despite renewed uncertainty in the euro zone. – Reuters

Tags: Dubai Islamic Bank | DIB | sukuk | bond |