June 4, 2020 / 1:26 PM / a month ago

Dubai Islamic Bank to revive Islamic bond deal postponed amid market turmoil - sources

DUBAI, June 4 (Reuters) - Dubai Islamic Bank has revived plans to issue a U.S. dollar-denominated sukuk, or Islamic bond, sources familiar with the matter said, a deal the bank had postponed during financial market volatility earlier this year.

The United Arab Emirates’ largest shariah-compliant lender had hired a group of banks in February for a deal, which one source said would have been for around $750 million. The sale was postponed due to turbulent market conditions resulting from the new coronavirus outbreak.

The bank is now considering issuing the bond soon, two sources familiar with the matter said, with one of them saying the deal could happen as early as next Monday.

Dubai Islamic Bank did not immediately respond to a request for comment.

The double whammy of the coronavirus crisis and low oil prices brought international public bond issuances from the Gulf to a halt for more than a month around March.

But primary public bond issues have since slowly opened up in the region, with investment-grade sovereigns ending the drought in April and junk-rated Bahrain selling $2 billion in bonds in May.

Qatar National Bank raised $1 billion in five-year bonds in May, the first non-sovereign public bond issue from the Gulf in international debt markets since February.

Back in February, Dubai Islamic Bank had hired Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank to arrange the planned dollar sukuk sale. (Reporting by Yousef Saba and Davide Barbuscia. Editing by Jane Merriman)

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