The first few weeks of January has seen a flurry of activity in the UAE’s Sukuk market as issuers take advantage of encouraging conditions for pricing.
Citigroup and Standard Chartered have also emerged as a clear favorite to manage the sales, participating in each of the three transactions announced so far in January.
Emirates Islamic Bank (EIB) closed the first Islamic bond deal from the Gulf this year, pricing its US$500 million five-year Sukuk at 4.72% on the 10thJanuary. The Sukuk’s pricing is equivalent to a spread of 350 basis points over midswaps.
Citi, ENBD Capital, HSBC, The Royal Bank of Scotland, the National Bank of Abu Dhabi (NBAD) and StanChart lead managed the transaction.
EIB’s successful sale is set to be followed by an issuance by First Gulf Bank on the 11thJanuary. The bank, which just sold a US$650 million Sukuk last year at 3.79%, has now mandated Citi, HSBC, NBAD and StanChart to joint lead manage a five-year US$500 million Islamic bond under its US$3.5 billion trust certificate issuance program.
Subscription for the Sukuk is set to begin on the 11thJanuary.
In what is likely a bid to strike while the iron is hot, Islamic mortgage provider Tamweel has also launched its five-year Sukuk, amounting to US$300 million. Guaranteed by its shareholder Dubai Islamic Bank (DIB), books for the deal are now open following roadshows which took place at the end of last year.
Pricing for the Sukuk is expected this week. Citi and StanChart are also lead managers of the transaction, along with DIB.
source: Islamic finance News