Home Industry Finance Dubai’s Tamweel Eyes Sukuk Issue The Islamic mortgage lender picks ADCB, Emirates NBD and UBS for meetings on asset-backed Sukuk. by Reuters June 18, 2012 Dubai-based Islamic mortgage lender Tamweel has picked three banks to arrange investor meetings ahead of a possible asset-backed dollar Islamic bond, or sukuk, arrangers said on Monday. A potential issue would be the second for Tamweel this year. The lender, a unit of Dubai Islamic Bank, last tapped global debt markets with a $300 million 5-year sukuk in January, fully guaranteed by its parent. The 5.154 per cent bond has tightened since issue and was yielding 4.65 per cent on Monday, according to Thomson Reuters data. Parent DIB itself issued a sukuk in May. The $500 million 5-year issue priced at 4.752 per cent, equating to a spread of 365 basis points over mid swaps. Tamweel has mandated Abu Dhabi Commercial Bank, UBS and Emirates NBD to arrange roadshows in Asia, Europe and the Middle East, which begin on June 19 in Abu Dhabi and end in London on June 25. Any eventual sukuk issue will be backed by properties and receivables located in Dubai, arranging banks said. It will be listed on the Irish Stock Exchange. Asset-backed sukuk are often seen as being closer to the spirit of Islamic law, since they allow investors to become the legal owners of underlying assets. They are also welcomed by many investors for their safety but such issues have been far and few in the Gulf due to lack of legal reforms. Kuveyt Turk, a Turkish affiliate of Kuwait Finance House, raised $350 million from a similar instrument in November 2011. Tamweel shares gained 1.7 per cent at 0725 GMT on the Dubai bourse Monday. The broader index was up 0.5 per cent. Tags Breaking News 0 Comments You might also like 19 injured after fire breaks out in a building in Abu Dhabi Two killed and over 100 injured in Abu Dhabi gas explosion Dubai’s DIFC Authority To Split Into Two Entities Syrian Defence Minister Killed