Price guidance for the issue, the first under the bank’s $5 billion program, was in the mid-swaps plus 235 basis points area earlier on Thursday. Initial talk had indicated low 200 basis points over mid-swaps.
The two market sources said ADIB, the second largest Islamic lender in the United Arab Emirates, was eyeing $750 million from the sukuk sale. The book size was about $2 billion, sources said.
Investor feedback on the sukuk was that early price indications had been too tight, according to one analyst research note on Thursday.
ADIB mandated Barclay’s Capital, HSBC and Standard Chartered for the benchmark sukuk which is due to price on Thursday. Benchmark sized bonds are typically $500 million.
In September, Qatar Islamic Bank raised $750 million from a sukuk issue, helping reopen the regional market and meet strong demand for Islamic paper.
ADIB shares closed up 1.3 percent on Thursday and have gained 25.4 percent this year.
Last week, the bank reported a 31-percent rise in third-quarter profits and said it would keep booking provisions amid continued economic weakness.
