* $500 mln sukuk is first tranche of global sukuk
* Al Hilal sukuk programme between $2 bln and $5 bln
* Sukuk seen launching in fourth quarter
(Recasts, changes source)
DUBAI, Aug 29 Abu Dhabi government-owned Al
Hilal Bank plans to raise $500 million through the sale of a
5-year Islamic bond, or sukuk, in the fourth quarter, an
official told Reuters on Monday.
The issuance would be the first tranche of a global sukuk,
the official said, adding that the lender's sukuk programme is
expected to be between $2 billion and $5 billion.
The potential issue would be the first sukuk sale for the
lender. The official declined to be identified as he was not
authorised to speak to media.
Earlier in the day, Al Hilal's Chief Executive Mohammad
Berro told local daily Gulf News that the Islamic bank will use
proceeds to support the bank's growth and diversify its funding.
"We are hoping to close the issue by the end of the last
quarter this year," Berro told the newspaper in an interview.
Berro said the currency of the Islamic bond and the lead
manager of the issue would be announced at a later date.
In July, Berro told Reuters that the unlisted bank, wholly
owned by the Abu Dhabi Investment Council (ADIC), will look at
tapping capital markets through a sukuk sale by the end of the
year or in 2012.
Another regional daily reported on Monday that the bank
could seek to issue at least $1 billion in sukuk by the end of
the year, citing Al Hilal's head of wholesale banking.
Investor appetite for Islamic debt from the region has
proved resilient despite market volatility. UAE lender First
Gulf Bank raised $650 million from the sale of
five-year Islamic bonds in July, in a significantly
oversubscribed deal that benefited from solid global demand for
Issues from entities such as Sharjah Islamic Bank ,
which launched a $400 million sukuk in May, and HSBC Middle
East, with a $500 million offering the same month, also set a
positive tone with both issues well oversubscribed.
(Reporting by Stanley Carvalho and Shaheen Pasha, Editing by