DUBAI: Dubai Islamic Bank, the biggest Islamic lender in the United Arab Emirates, is set to raise $1 billion from a sale of long five-year sustainable sukuk, a bank document showed on Thursday.

The Islamic bonds launched at a yield of 4.8%. Initial price guidance was around 130 basis points over U.S. Treasuries.

Demand for the debt sale was over $2.75 billion, excluding interest from joint lead managers.

Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq, Sharjah Islamic Bank, Standard Chartered Bank and the Islamic Corporation for the Development of the Private Sector arranged the deal.