DUBAI – Dubai Islamic Bank began marketing on Thursday U.S. dollar-denominated Additional Tier 1 sukuk, or Islamic bonds, at an initial price guidance of around 5.25%, a document from one of the banks arranging the deal showed.
The benchmark size AT1 notes, which are perpetual in nature, can first be redeemed by DIB in May 2026. Benchmark size generally means at least $500 million.
A source familiar with the deal, which is expected to close later on Thursday, told Reuters DIB would likely raise between $750 million and $1 billion.
(Reporting by Yousef Saba; Editing by Jacqueline Wong) ((Yousef.Saba@thomsonreuters.com; +971562166204))
