* 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
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)