June 24, 2014 / 9:37 AM / 3 years ago

UPDATE 1-UAE's Al Hilal Bank to price $500 mln perpetual sukuk

(Adds launch pricing)

DUBAI, June 24 (Reuters) - Abu Dhabi’s Al Hilal Bank will price its $500 million capital-boosting sukuk issue later on Tuesday at the tight end of revised guidance, a document from lead managers said, as high demand helped reduce the borrowing cost.

The transaction, which has a perpetual tenor but can be bought back by the lender after the fifth year, will price at the tight end of the 5.5-5.625 percent range given earlier on Tuesday, the document said.

Strong investor demand - order books were worth around $5 billion - has helped reduce the price which Al Hilal will pay to complete the sukuk. It had originally started in the area of 6 percent on Monday before being trimmed to the 5.75 percent area.

The unlisted Islamic lender, owned by the Abu Dhabi Investment Council, has chosen itself as well as Citigroup , Emirates NBD, HSBC, National Bank of Abu Dhabi and Standard Chartered to arrange the deal. (Reporting by Archana Narayanan; Writing by David French, Editing by Andrew Torchia)

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