Dubai Islamic Bank has priced a $750 million sukuk with a five year lifespan, a document from arranger banks said on Wednesday, with the cost of borrowing reduced by significant investor demand.
The wakala-structured deal, in which one party manages assets on behalf of another, was completed at a spread of 125 basis points over midswaps and carried a profit rate of 2.921 percent, the document said.
The final spread was at the tight end of revised guidance of 125-135 bps and well inside the initial price thoughts of 140 bps over the same benchmark issued at the start of Wednesday.
An order book worth over $1.6 billion was declared by arranging banks when the guidance was tightened to the revised range.
The transaction for DIB, the largest Islamic bank in the United Arab Emirates, was arranged by First Gulf Bank, HSBC, Maybank, National Bank of Abu Dhabi, Standard Chartered and itself.-Reuters
