Abu Dhabi government-owned Al Hilal Bank plans to raise $500 million through the sale of a 5-year Islamic bond (sukuk), a regional daily reported on Monday, citing the bank's chief executive officer.

Mohammad Berro told the Gulf News that the Islamic bank is finalising the sukuk issue and will use proceeds to support the bank's growth and diversify its funding.

'We are hoping to close the issue by the end of the last quarter this year,' Berro told the newspaper in an interview.

A potential issue would be the first sukuk sale for the lender. Berro said the currency of the Islamic bond and the lead manager of the issue would be announced at a later date.

In July, the executive told Reuters that the unlisted bank, wholly owned by the Abu Dhabi Investment Council (ADIC), will look at tapping capital markets through a sukuk sale by the end of the year or in 2012.

Another regional daily reported on Monday that the bank could seek to issue at least $1 billion in sukuk by the end of the year, citing Al Hilal's head of wholesale banking.-Reuters