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Middle East

Dubai Islamic Bank sells $1 billion in 5-year sukuk

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People walk past a branch of Dubai Islamic Bank on Baniyas Road in Dubai February 6, 2012. REUTERS/Nikhil Monteiro

DUBAI, June 15 (Reuters) - Dubai Islamic Bank (DISB.DU), the United Arab Emirates' largest Islamic lender, sold $1 billion in five-year sukuk on Tuesday after receiving more than $2.8 billion in orders for the Islamic bonds, a document showed.

It sold the sukuk at 110 basis points (bps) over mid-swaps, tightened from initial guidance of around 135 basis points over mid-swaps, the document from one of the banks on the deal showed.

Bank ABC, Dubai Islamic Bank (DISB.DU), Emirates NBD Capital (ENBD.DU), First Abu Dhabi Bank (FAB.AD), HSBC (HSBA.L), KFH Capital (KFH.KW), Standard Chartered (STAN.L) and the Islamic Corporation for the Development of the Private Sector arranged the deal.

DIB, a regular issuer in the international debt market, raised $500 million in April in a sukuk sale that set a record low rate for Additional Tier 1 (AT1) deals from the region.

That debt sale followed a $1 billion AT1 sukuk deal in November.

Reporting by Yousef Saba; Editing by Jacqueline Wong

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