DIB eyes bond sale for Tamweel

Citibank, StanChart, DIB mandated to arrange investor meetings

Dubai Islamic Bank (DIB) and its mortgage unit Tamweel plan to hold fixed income roadshows beginning in Asia, followed by the UAE and Europe, eyeing a potential bond sale for the unit guaranteed by the bank.

The roadshow will kick off in Kuala Lumpur on Thursday, with meetings in Singapore on Friday, the UAE on Sunday and London on Monday, a lead arranger told Reuters.

DIB mandated Citibank, Standard Chartered and itself to arrange the investor meetings, the lender said in a statement on Wednesday.

Despite the flood of bond issuances in the Gulf, particularly sukuk or Islamic bonds, there is likely to be demand for Tamweel debt, especially with a guarantee from DIB, said Ahmad Alanani, senior executive officer of investment firm Exotix in Dubai.

"Without that guarantee, it would fall into high yield space," he said. "There's definitely improved sentiment regarding Tamweel since DIB effectively took it over."

DIB, the UAE's third-largest bank by market value, raised its stake in Tamweel to 57.33 per cent in 2010, effectively rendering the mortgage lender a subsidiary of the bank.

Tamweel will issue a $300-$500 million sukuk in the fourth quarter, its acting chief executive said in September.

Islamic bond issues, which have outpaced the conventional bond industry in recent months, should continue to show strength into the first quarter of 2012 as borrowers seek better pricing and alternative funding amid the global debt crisis.

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