Emirates Islamic Bank raises $500 mln via five-year sukuk to shore up liquidity

The crew of a competing boat in the annual long-distance 60ft Dubai Traditional Dhow Sailing Race, work on the sail across from Burj Al Arab. (File photo: AFP)

Emirates Islamic Bank sold $500 million in five-year sukuk, or Islamic bonds, on Wednesday after receiving around $1.1 billion in orders for the debt sale, a document showed.

The deal is among a flurry of bond issues by banks in the Gulf as they seek to shore up liquidity following the twin shock of the coronavirus crisis and weaker oil prices.

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Gulf International Bank sold $500 million in five-year bonds on Wednesday.

Emirates Islamic Bank’s sukuk was priced at 150 basis points over mid-swaps, some 20 bps tighter from where it began marketing them earlier on Wednesday, the document from one of the banks arranging the deal and seen by Reuters showed.

Emirates NBD Capital, HSBC, The Islamic Corporation for the Development of the Private Sector, and Standard Chartered arranged the debt sale.

Last Update: Wednesday, 16 September 2020 KSA 21:05 - GMT 18:05