Abu Dhabi's Union National Bank (UNB) will aim to price a benchmark-sized five-year dollar-denominated bond this week, as Middle Eastern issuers spot a window in volatile economic conditions to return to the debt market.

The bank has mandated Citi, Deutsche Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered for the trade, with books currently open to orders from investors, two lead managers said.

A benchmark-sized deal is upwards of $500 million.

International Petroleum Investment Company (IPIC) reopened the Gulf bond market last week and this paved the way for UNB, a banker close to the deal said.

However, the bumper $3.75 billion three-tranche bond, which included $1.5bn with a March 2017 maturity, was priced with an additional premium to attract interest and this could impact on what UNB has to pay, a trader said.

No price talk has been released to the market, the leads added. IPIC's five-year tranche priced at 262.5 bps over US Treasuries.

UNB held a series of investor meetings at the end of September but volatile market conditions meant the roadshows were completed without an issue subsequently following.

Capital raised from the bond issue will be used to help repay a $1bn loan which is due to mature in December, according to a prospectus issued at the time.

UNB posted a 7.3 per cent increase in third-quarter profit last week, helped by a surge in net interest income.-Reuters