June 23, 2020 / 11:06 AM / 14 days ago

UPDATE 1-Dubai Islamic Bank sells $300 mln in 2026 sukuk reopening, document shows

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By Yousef Saba

DUBAI, June 23 (Reuters) - Dubai Islamic Bank (DIB) , the largest Islamic lender in the United Arab Emirates, sold $300 million in a reopening of its existing sukuk issuance maturing in 2026, a document showed on Tuesday.

The bank set the spread at 240 basis points (bps) over midswaps for the so-called “tap” of the Islamic bonds, tightening from an initial price guidance of about 250 bps over midswaps, the document from a bank arranging the deal showed.

Under a bond tap, an existing transaction is reopened for subscription, using the same documentation as before.

DIB received about $600 million in orders for the tap.

Earlier this month, the bank sold $1 billion in sukuk due in January 2026. The issuance is due to be settled on June 30.

DIB, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, the Islamic Corporation for the Development of the Private Sector and Standard Chartered arranged the sukuk reopening.

Reporting by Yousef Saba; Editing by Louise Heavens and Edmund Blair

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