Dubai-based Noor Bank plans roadshows next week for sukuk

Dubai-based Noor Bank plans to start roadshows next week for a benchmark-sized sukuk, according to a source familiar with the matter. A benchmark issue is usually around $500m.

Citigroup, Deutsche Bank and Standard Chartered are arranging the issue, which will likely have a five year duration, the source said.

Activity in the Islamic bond market has been relatively brisk this month, with Dubai-based airline Emirates, Saudi Arabia’s Dar Al Arkan Real Estate Development Co and the government of Sharjah all issuing sukuk. Most recently, Bahrain this week issued a $1bn sukuk.

Since chief executive John Iossifidis joined Noor in April last year, the bank has undertaken a turnaround plan, including moving away from unsecured lending to small and medium-sized enterprises and shifting the focus of its retail business more towards affluent consumer clients.

The government of Dubai, members of the emirate’s ruling family and a select group of UAE nationals own 88.3 per cent of the bank’s shares in aggregate, according to its website.