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Dubai Islamic Bank $500 Million Sukuk Oversubscribed

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May 23 (Bloomberg) -- Dubai Islamic Bank PJSC said demand for its Islamic bond exceeded the $500 million on sale by four times.

The issue, the lender’s first since March 2007, was priced at 365 basis points above the benchmark midswap rate and was the most expensive sale by a bank in the Persian Gulf this year, data compiled by Bloomberg show.

“The new issue is driven by the need to maintain a presence in the international debt capital markets and a prudent strategy to diversifying our funding sources,” Deputy Chief Executive Officer Adnan Chilwan said in an e-mailed statement today.

Investors from the Middle East bought 73 percent of the bonds, while 15 percent was sold to buyers from Europe and 12 percent from Asia. Banks comprised 61 percent of investors, funds 24 percent, private banks 8 percent, and sovereign and supra national agencies 7 percent, according to the statement.

To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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