Sharjah Islamic Bank picks banks for sukuk sale - lead

DUBAI, April 2 Tue Apr 2, 2013 12:24am EDT

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DUBAI, April 2 (Reuters) - Sharjah Islamic Bank has picked four banks to arrange meetings with fixed income investors ahead of a potential Islamic bond, or sukuk, issue, a lead manager said on Tuesday.

The lender chose Abu Dhabi-based Al Hilal Bank, HSBC , Kuwait's Liquidity Management House and Standard Chartered to lead the roadshows, which begin on Thursday and will take place in Asia and Europe.

A dollar-denominated, benchmark-sized sukuk may follow the meetings, subject to market conditions. Benchmark size is understood to mean at least $500 million.

The Abu Dhabi-listed bank last issued a dollar-denominated sukuk to international investors in 2011, when it printed a $400 million five-year sukuk. The issue was trading to yield 2.54 percent at a z-spread of 202.3 basis points at 0415 GMT.

The z-spread expresses relative value by calculating the number of basis points that need to be added to a zero-coupon yield curve to make the bond's discounted cash flows equal its present value. (Reporting by David French; Editing by Dinesh Nair)

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