Dubai will raise about $1.93 billion through the biggest Islamic bond sale from the Gulf region this year, two bankers with the knowledge about the transaction revealed. They said the emirate is seeking to borrow about $1.25 billion from its dollar-denominated, five-year fixed-rate Islamic bond, or Sukuk, and AED2.5 billion ($680 million) from a local currency floating-rate Islamic note. Dubai attracted about $6.55 billion in orders, they said. The Sukuk's fixed-rate dollar portion will see an issue of $1.25 billion, while the dirham-denominated tranche will see an issue of 2.5 billion dirhams ($680.8 million). The Sukuk was oversubscribed, with orders totaling about $6.4 billion, according to bankers. “Dubai is testing the market,” said one Dubai-based banker. “They don't want to raise the full bond at about 6 percent. They are hoping spreads come in and then they'll go to the market for more.”
