Dubai Islamic Bank (DIB), the largest sharia-compliant lender in the United Arab Emirates, is planning to issue a benchmark-sized, dollar-denominated Islamic bond, or sukuk, lead arranging banks said.
Roadshows for the bond sale will begin in Kuala Lumpur on Thursday and end in London on Monday, a document issued by the lead banks showed.
In addition to DIB, an advisor to Dubai government’s recent $1.25 billion bond sale, the lead banks for the bond issue are HSBC, National Bank of Abu Dhabi, Emirates NBD, Deutsche Bank.
Regional banks have scrambled to tap liquidity in Islamic bond markets this year with Banque Saudi Fransi expected to issue a benchmark-sized Islamic dollar bond this week. Abu Dhabi’s First Gulf Bank and Dubai’s Emirates Islamic Bank have also issued sukuk this year.
Benchmark bond issues are typically at least $500 million.
DIB last tapped debt markets in 2007 with a $750 million sukuk arranged by Barclays, Citi and Standard Chartered. The bond was repaid earlier this year, Reuters reported.
