Bahrain will attempt to tap international investors during roadshows later this month for a benchmark-sized, dollar-denominated Islamic bond.

Investor meetings will start after next week's Eid Al-Adha holiday, taking place simultaneously in Saudi Arabia and Kuala Lumpur on November 14 and London and Singapore on November 15, a lead manager said on Wednesday.

BNP Paribas , Citigroup and Standard Chartered have been mandated to run the potential ijara sukuk issue, he added.

Ijara sukuk, one of the most common forms of Islamic financing, involves a transfer of tangible assets -- most commonly real estate -- from one party to the next as Islamic law does not allow for debt or interest payments.

"It is very early to tell whether there will be good investor demand for the issue. It depends on the global environment, what happens over the next week or two," said Nish Popat, senior investment manager at ING Investment Management.      

"Investor appetite for Middle East bonds has improved, and we continue to believe that people look at the Middle East for value," he said.

The Central Bank of Bahrain confirmed on Wednesday it was looking to sell a sukuk but did not give further detail on the size of the issue, nor comment on likely investor demand.     

Bankers said in September that Bahrain had mandated the three institutions for a $1 billion sukuk. Bahrain had initially looked to sell a $1 billion conventional bond at the beginning of the year but, having invited banks to pitch for roles on the transaction, was forced to postpone plans amid political unrest affecting the kingdom and the wider Arab region.

By switching to the Islamic structure, analysts have said Bahrain was hoping to attract more demand from regional investors, mainly from Saudi Arabia.  - Reuters