Dubai Islamic Bank sells $1bln in 5-year sukuk

Dubai Islamic Bank tightened from initial guidance of around 135 bps over mid-swaps after receiving more than $2.5bln in orders for the debt sale

  
A view of a branch of Dubai Islamic Bank branch along Khalid Bin Al-Waleed Road in Dubai May 30, 2010. REUTERS/Mosab Omar/File Photo

A view of a branch of Dubai Islamic Bank branch along Khalid Bin Al-Waleed Road in Dubai May 30, 2010. REUTERS/Mosab Omar/File Photo

Dubai - Dubai Islamic Bank, the United Arab Emirates' largest Islamic lender, sold $1 billion in five-year sukuk on Tuesday after receiving more than $2.8 billion in orders for the Islamic bonds, a document showed.

It sold the sukuk at 110 basis points (bps) over mid-swaps, tightened from initial guidance of around 135 basis points over mid-swaps, the document from one of the banks on the deal showed.

Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Standard Chartered and the Islamic Corporation for the Development of the Private Sector arranged the deal.

DIB, a regular issuer in the international debt market, raised $500 million in April in a sukuk sale that set a record low rate for Additional Tier 1 (AT1) deals from the region.

That debt sale followed a $1 billion AT1 sukuk deal in November.

(Reporting by Yousef Saba; Editing by Jacqueline Wong and Barbara Lewis) ((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))


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