Books open for Dubai Islamic hybrid sukuk

DUBAI, March 12 Mon Mar 11, 2013 11:52pm EDT

DUBAI, March 12 (Reuters) - Books are open for the planned issue of a sharia-compliant debt instrument by Dubai Islamic Bank, which is expected to price this week, lead arrangers said on Tuesday.

Initial guidance for the instrument's profit rate is in the 7 percent area, they said.

Last week Dubai Islamic, the largest sharia-compliant lender in the United Arab Emirates by assets, said it planned to issue a dollar-denominated, benchmark-sized hybrid sukuk, subject to market conditions.

The sukuk is expected to boost the bank's Tier 1 capital, becoming the region's second such deal. In November, Abu Dhabi Islamic Bank raised Tier 1 capital in a deal which attracted order books of over $15 billion from global accounts. (Reporting by Rachna Uppal; Editing by Andrew Torchia)