* DIB prices $500 mln 5-yr sukuk; 4.752 pct coupon
* First foray into debt market since 2007
* Prices despite market volatility, benefits from sukuk structure (Adds pricing info, background)
DUBAI, May 22 Dubai Islamic Bank priced a five-year, $500 million Islamic bond, or sukuk, on Tuesday, the first time the bank has tapped debt capital markets since 2007.
The deal priced at par with a profit rate of 4.752 percent at a spread of 365 basis points over midswaps, arranging banks said.
The spread was 10 basis points tighter than initial price guidance released the previous day, indicating good demand for the issue.
The sukuk market has proved relatively resilient amid the latest phase of euro zone volatility, benefiting from the ability to tap pockets of liquidity in the Middle East which are sheltered from wider market dislocation.
Deutsche Bank, Emirates NBD, National Bank of Abu Dhabi, HSBC and DIB itself are bookrunners on the deal.
While DIB itself has not issued since 2007, Dubai's largest Islamic bank did guarantee a $300 million five-year sukuk from Islamic mortgage lender subsidiary Tamweel in January.
That transaction priced at par with a profit rate of 5.154 percent and carried a spread of 400 basis points over midswaps.
Tamweel 2017s were trading at a z-spread of 415 bps on Monday, but the bonds are not very liquid. The z-spread is a pricing tool which calculates the number of basis points that need to be added to a zero-coupon yield curve to make the bond's discounted cash flows equal the bond's present value. (Reporting by Rachna Uppal; Editing by Amran Abocar)