Wednesday, May 23, 2012
(This story was originally published Tuesday.)
DUBAI (Zawya Dow Jones)--Dubai Islamic Bank, the U.A.E.'s largest shariah-compliant lender by market value, has priced its $500 million, five-year Islamic bond, or sukuk, after receiving strong demand, a banker aware of the transaction said Tuesday.
The sukuk will carry a profit rate of 4.752% and the final spread of 365 basis points over mid swaps is tighter than the initial guidance, the banker, who declined to be identified, told Zawya Dow Jones. The order book reached about $2.1 billion, he added.
Deutsche Bank, DIB, Emirates NBD, HSBC and National Bank of Abu Dhabi helped arrange the Regulation S transaction, after DIB met fixed-income investors in Asia, Middle East and Europe over the past few days.
Fitch Ratings last week said it has assigned DIB's $2.5 billion trust certificate issuance program a 'A(exp)'expected rating.
Several local banks have tapped the markets this year as appetite for the region's debt remains strong despite challenging global market conditions, buoyed by hopes of robust economic growth fueled by high oil prices.
-By Nikhil Lohade, Dow Jones Newswires; +9714 446-1694; nikhil.lohade@dowjones.com; Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
23-05-12 0356GMT
