DUBAI, Aug 31 (Reuters) - Dubai Islamic Bank, the
United Arab Emirates' largest Islamic lender, is planning to
soon sell U.S. dollar-denominated senior sukuk, or Islamic
bonds, two sources said.
Banks have already been hired for the deal, which is
expected as soon as next week and is likely to be around $500
million in size, one of the sources familiar with the matter
DIB did not immediately respond to a Reuters request for
Several issuers from the Gulf are expected to return to the
international debt markets in the next few weeks following a
lull in activity over the summer, bankers said.
Companies and governments are seeking to lock in funding
while global interest rates remain low, ahead of expectations of
policy tightening from the U.S. Federal Reserve.
While a rebound in energy prices this year has reduced the
financing needs of the oil-producing Gulf region, corporate
issuance - including from government-related entities - to
refinance loans and bonds due this year is expected to remain
sizeable, the Institute of International Finance has said.
The Gulf so far this year has raised a combined $95 billion
in the international markets, while in 2020 international bonds
from the region totalled $111 billion, dominated by sovereigns
and quasi-sovereigns, said the IIF.
DIB sold $1 billion in five-year senior sukuk in June as
well as $500 million in Additional Tier 1 sukuk in April, a deal
that at the time set a record low rate for AT1 instruments from
(Reporting by Davide Barbuscia and Yousef Saba; Editing by Jan