Bond Drought Is Not a Problem as Dubai Islamic Returns to Market - Bloomberg Business

Bond Drought Is Not a Problem as Dubai Islamic Returns to Market - Bloomberg Business:



"The worst start to a year since 2011 for Gulf sukuk sales isn’t deterring the United Arab Emirates’ oldest Shariah-compliant bank from tapping the market for the second time in four months.



Dubai Islamic Bank PJSC’s $1 billion perpetual notes sold in January are the Gulf Cooperation Council’s best performing Shariah-compliant bonds in 2015, returning investors triple the average gain through May 20. A fresh issue from the lender, which starts meeting investors on Thursday, would cement its status as the top borrower in the region after sales plunged 63 percent from a year ago.



“Dubai Islamic has been ahead of the field in terms of raising capital at a competitive funding cost,” Sanyalaksna Manibhandu, the head of research at NBAD Securities LLC, the brokerage of the country’s biggest bank, said by phone from Abu Dhabi on Wednesday. The bank expanded faster “than other lenders in the U.A.E. in 2014 and will likely do so again in 2015. All of that requires capital,” he said."



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