Qatar has set initial profit guidance on the sale of its two-tranche benchmark sukuk (Islamic bond), lead arrangers said on Tuesday.

The Gulf state set initial guidance of 135 basis points over mid-swaps for the five-year tranche, and 175 bps over for the 10-year tranche.

A benchmark bond is typically at least $500 million in size.

Qatar has hired HSBC Holdings, Deutsche Bank , Standard Chartered Plc and local lenders Barwa Bank and QInvest for the sale.

The sukuk is scheduled to be sold this week, according to documents from lead banks.-Reuters