Noor Bank sets up Dh11bn sukuk programme

Islamic lender Noor Bank may conduct a benchmark-sized sukuk issue after setting up a $3 billion (Dh11 billion) Islamic bond programme, the Dubai-based bank confirmed to Reuters on Tuesday.

“Noor Bank has confirmed that they have today established (a) $3 billion sukuk trust certificates issuance programme to be listed on Nasdaq Dubai,” the bank said in a statement to Reuters.

The Islamic bank added it “may consider a benchmark Reg S sukuk issuance”, although it did not specify a timeframe.

Noor Bank said its sukuk programme had been arranged by itself as well as Citigroup and Standard Chartered.

Those three banks would be joined by Dubai Islamic Bank, Emirates NBD and Sharjah Islamic Bank as book-runners for the debut sukuk transaction, according to the banking sources.

Noor Bank is planning to meet fixed income investors starting Friday ahead of the potential sale of a debut Islamic bond issue, a document from lead arrangers showed.

The bank will meet investors in the Middle East, Asia and Europe starting Friday.

A dollar-denominated sukuk of benchmark size may follow during the course of 2015, subject to market conditions, the document said. Traditionally, benchmark size is understood to mean upwards of $500 million.

Noor Bank chose Standard Chartered as global coordinator and Al Hilal Bank, Citigroup, Dubai Islamic Bank, Emirates NBD, Qinvest, and Sharjah Islamic Bank as joint lead managers for the sukuk issue, the document added.

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