Thursday, Jan 12, 2012
DUBAI (Zawya Dow Jones)--Abu Dhabi-based First Gulf Bank's (FGB.AD) $500 million, five-year Islamic bond, or sukuk, will carry a profit rate of 4.046%, a banker familiar with the matter said.
The sukuk was priced late Wednesday at 287 basis points over five-year mid swaps, in line with the initial price talk, the banker, who declined to be identified, told Zawya Dow Jones.
The sukuk will be issued under FGB's $3.5 billion trust certificate issuance program, FGB said in an emailed statement earlier this week. Proceeds from the issue are to be used for Islamic general corporate purposes and to fund the lender's Islamic loan book growth.
Book runners for the issue included Citi, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank.
First Gulf Bank is the second U.A.E. bank this year to tap the Islamic bond market, after Emirates NBD's Islamic unit priced a $500 million sukuk Tuesday.
Dubai-based Islamic mortgage company Tamweel on Thursday announced a 5-year, $300 million Islamic bond, or sukuk, the latest local issuer to tap Islamic finance markets for funds amid tighter lending conditions in Europe and elsewhere.
-By Nikhil Lohade, Dow Jones Newswires, +9714 446 1694, nikhil.lohade@dowjones.com
Copyright (c) 2012 Dow Jones & Co
(END) Dow Jones Newswires
12-01-12 0528GMT
