Emirates Islamic Bank, a unit of Emirates NBD (ENBD), has picked six banks for a potential benchmark-sized dollar sukuk, or Islamic bond, a source familiar with the matter said on January 03. The lender selected National Bank of Abu Dhabi, HSBC, Standard Chartered, Citi, RBS and ENBD Capital.
Any eventual bond issue will be fully guaranteed by Emirates NBD, lead arrangers said in a mandate announcement seen by Reuters. Investor meetings kick off in Malaysia on January 5 and will cover Singapore and Abu Dhabi before ending in London on January 10. A sukuk could follow depending on market conditions, said the source who spoke on condition of anonymity.
Benchmark-sized is normally understood to be at least $500 million. ENBD, Dubai's largest lender by market value, has just under $2.2 billion in debt maturing in 2012. The government has a 55.6 percent stake in the bank.
An ENBD spokesman was not immediately available for comment. In December, ENBD Chief Executive Rick Pudner said the bank was eyeing a five year Islamic bond and reviewing the timing of an issue.
The lender was merged with Dubai Bank in October at the Dubai ruler's behest and investors will be keen for more information on the impact of the deal and how it will be integrated into Emirates NBD.
There is strong demand for sukuk despite the global volatility partly because Islamic investors in the Gulf remain cash-rich and due to the limited supply of sukuk issues.
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