Dubai's Noor Bank launches $500m sukuk at 6.25%

25/05/2016 05:29 AST

Dubai-based Noor Bank has launched a $500 million capital-boosting sukuk issue of five years duration that will price later on Tuesday, a document from lead managers showed.

Pricing for the transaction, which has a perpetual tenor and an option for the Islamic bank to redeem the paper after five years, has been set at 6.25 per cent, according to the document.

This is well inside the guidance of the 6.5 per cent area which was given late on Monday, which itself was inside initial pricing thoughts.

Order books closed in excess of $1 billion for the deal, which will enhance the sharia-compliant bank's Tier 1, or core, capital.

Noor Bank, rated A- by Fitch Ratings, last week named Citi and Standard Chartered as joint global coordinators, with those banks plus Dubai Islamic Bank, Emirates NBD Capital, First Gulf Bank, Noor Bank and Sharjah Islamic Bank acting as joint lead managers for the issue.

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