* Tamweel picks ADCB, Emirates NBD and UBS for meetings
* Potential sukuk to be backed by properties in Dubai
* Roadshows begin June 19 in Abu Dhabi, end June 25 (Adds details, background)
By Rachna Uppal
DUBAI, June 18 Dubai-based Islamic mortgage lender Tamweel has picked three banks to arrange investor meetings ahead of a possible asset-backed dollar Islamic bond, or sukuk, arrangers said on Monday.
A potential issue would be the second for Tamweel this year. The lender, a unit of Dubai Islamic Bank, last tapped global debt markets with a $300 million 5-year sukuk in January, fully-guaranteed by its parent.
The 5.154 percent bond has tightened since issue and was yielding 4.65 percent on Monday, according to Thomson Reuters data.
Parent DIB itself issued a sukuk in May. The $500 million 5-year issue priced at 4.752 percent, equating to a spread of 365 basis points over midswaps.
Tamweel has mandated Abu Dhabi Commercial Bank, UBS and Emirates NBD to arrange roadshows in Asia, Europe and the Middle East, which begin on June 19 in Abu Dhabi and end in London on June 25.
Any eventual sukuk issue will be backed by properties and receivables located in Dubai, arranging banks said. It will be listed on the Irish Stock Exchange.
Asset-backed sukuk are often seen as being closer to the spirit of Islamic law, since they allow investors to become the legal owners of underlying assets. They are also welcomed by many investors for their safety but such issues have been far and few in the Gulf due to lack of legal reforms.
Kuveyt Turk, a Turkish affiliate of Kuwait Finance House , raised $350 million from a similar instrument in November 2011.
Tamweel shares gained 1.7 percent at 0725 GMT on the Dubai bourse Monday. The broader index was up 0.5 percent. (Editing by Dinesh Nair)