Emirates Islamic Bank raises $500mln via five-year sukuk

It gave initial price guidance of around 170 basis points over mid-swaps for the sukuk

  
A man walks past a branch of Emirates Islamic Bank along Khalid Bin Al-Waleed Road in Dubai.

A man walks past a branch of Emirates Islamic Bank along Khalid Bin Al-Waleed Road in Dubai.

REUTERS/Mosab Omar

DUBAI: Emirates Islamic Bank sold $500 million in five-year sukuk, or Islamic bonds, on Wednesday after receiving around $1.1 billion in orders for the debt sale, a document showed.

The deal is among a flurry of bond issues by banks in the Gulf as they seek to shore up liquidity following the twin shock of the coronavirus crisis and weaker oil prices.

Gulf International Bank sold $500 million in five-year bonds on Wednesday. 

Emirates Islamic Bank's sukuk was priced at 150 basis points over mid-swaps, some 20 bps tighter from where it began marketing them earlier on Wednesday, the document from one of the banks arranging the deal and seen by Reuters showed.

Emirates NBD Capital, HSBC, The Islamic Corporation for the Development of the Private Sector, and Standard Chartered arranged the debt sale.

(Reporting by Yousef Saba; Editing by Clarence Fernandez and Catherine Evans) ((Yousef.Saba@thomsonreuters.com; +971562166204))

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