Investment Corporation of Dubai (ICD) has increased the amount of cash it will raise from the sukuk portion of its debut bond issue but cut the amount to come from a conventional bond tranche, a document from lead arrangers said.
The state-owned fund, which holds stakes in some of the emirate’s top companies, will now raise $700 million from an Islamic bond with a six year lifespan, up from the $500 million it had previously said it would raise.
However, the amount of cash to come from a conventional bond of ten years duration has been cut to $300 million, the document said. The size of the issue had been earmarked for $500 million.
Pricing on the sukuk will come at 160 basis points over midswaps, the document said, the mid-point of the revised 155-165 bps price range given earlier on Wednesday.
Meanwhile, the ten-year bond will price at the top of the 200-210 bps over midswaps revised range.
The deal is being arranged by Citigroup, Dubai Islamic Bank, Emirates NBD, HSBC and Standard Chartered.