* HSBC seeks to tap demand for Islamic debt
* Sukuk priced in line with guidance
DUBAI, May 29 HSBC's (HSBA.L) Middle East unit
priced a $500 million Islamic bond on Thursday at 155 basis
points above midswaps, carrying a maturity of five years.
The Islamic bond, or sukuk, yielding 3.575 percent, saw
regional investors taking up 58 percent of orders, followed by
Asian investors with 29 percent.
Banks constituted 61 percent of orders by investor type,
while orders were split 55 percent and 45 percent by
conventional and Islamic investors respectively.
"As an issuer within the broader HSBC group we are very
focussed on diversification of stable funding," said Georges
Elhedery, co-Head of Global Markets for the MENA region said in
"The pricing, size and tenor are all in line with our
expectations and form a valuable component of our funding."
HSBC Middle East, a subsidiary of the U.K.-based lender,
held roadshows last week in Asia, the Middle East and London
gauge sentiment for a five-year Islamic bond, or sukuk as the
lender looks to tap demand for Islamic paper. [ID:nLDE74N02C]
In October last year, HSBC Middle East raised $500 million
from a conventional five-year bond issue at 3 percent.
(Reporting by Rachna Uppal; Editing by Dinesh Nair)