Abu Dhabi's Al Hilal Bank to price debut sukuk Tues, subject to markets

DUBAI, Sept 30 Mon Sep 30, 2013 6:38am EDT

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DUBAI, Sept 30 (Reuters) - Abu Dhabi government-owned Al Hilal Bank will price its debut Islamic bond offering on Tuesday, subject to market conditions, a document from lead managers said, with investors showing strong demand for the issue.

Books are now open for the transaction, with commitments from investors already totalling $2.75 billion, the document said.

Lead managers had said on Sunday that the five-year sukuk would be of benchmark size - traditionally understood to be worth at least $500 million - with initial price guidance set at 190 basis points over midswaps.

While bankers often hedge the timetable for pricing bond and sukuk issues with 'subject to market conditions', such a statement is more pertinent in this case, given the uncertainty in financial markets stemming from the potential shutdown of the U.S. government later on Monday.

Al Hilal, fully owned by state fund Abu Dhabi Investment Council, is due to conclude meetings with fixed-income investors on Monday in London.

Citigroup, HSBC, National Bank of Abu Dhabi and Standard Chartered are arranging the roadshows, along with Al Hilal itself. (Reporting by Umesh Desai; Writing by David French; Editing by Andrew Torchia)

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