Emirates NBD, majority-owned by the Dubai government, may attract funds to the emirate's first sukuk sale by a bank since 2007, with debt priced at a 150 basis-point discount to the government's Islamic bond.
The lender's Sharia-compliant unit is likely to attract investors with returns as low as 275 basis points above midswaps, or about 4 per cent, Albaraka Banking Group said. The yield on the Dubai government's non-rated 6.396 per cent sukuk maturing November 2014 was at 5.62 per cent at 12.06pm in Dubai. Emirates NBD, rated A3 by Moody's Investors Service, the seventh-highest investment grade, may report a 19 per cent gain in 2011 profit, according to data compiled by Bloomberg.
"Our tentative expectation for the sukuk's initial price guidance is in the area of 4 per cent and 4.25 per cent," Malek Khodr Temsah, Albaraka's assistant vice president of treasury and investment, wrote in a January 5 email.
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