DIB Releases New Sukuk

A deal for a new Islamic bond from DIB is being arranged by a host of local and global banks.

Dubai Islamic Bank has released initial price guidance for a new 5-year benchmark-sized Islamic bond, or sukuk, arranging banks said on Monday.

Indicative pricing for the sukuk was given at 375 basis points over mid swaps. The borrower wraps up roadshows in London on Monday, and execution of the deal is expected on Tuesday, arrangers said.

Benchmark is usually understood to mean at least $500 million.

Deutsche Bank, Emirates NBD, HSBC, National Bank of Abu Dhabi and DIB itself are arranging the deal.

An eventual sukuk issue is expected to benefit from a strong local bid as well as demand for Islamic assets despite renewed uncertainty in the euro zone.