DIFC Investments issues price thoughts for 10-year sukuk

DIFC Investments, the investment arm of Dubai's financial free zone, aims to price a benchmark-sized Islamic bond with a ten-year lifespan later this week after issuing initial price thoughts for the offer, a document from lead managers showed.

The firm is currently earmarking the US dollar-denominated sukuk to price in the area of the very low 200s in terms of basis points over midswaps, the document showed.

Benchmark size is traditionally understood to mean upwards of $500 million.

Dubai Islamic Bank, Emirates NBD, Noor Bank and Standard Chartered are arranging the sale, which is taking place after a series of roadshows with fixed income investors in Asia, the Middle East and Europe that were due to conclude on Monday.

In September, DIFC Investments said it was seeking to raise as much as $700 million by issuing Islamic bonds, proceeds of which would be partly used to refinance existing debt as well as provide cash for infrastructure investment.

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