Dubai’s ICD sets initial price guidance on benchmark bond offering

Dubai: Investment Corporation of Dubai (ICD), the state-owned fund which holds stakes in some of the emirate’s top companies, has given initial pricing guidance for its debut debt capital markets transaction, lead arrangers said on Tuesday.

The fund has earmarked to issue an Islamic bond with a six-year lifespan at a price in the area of 175 basis points over midswaps and a conventional bond offering of 10 years duration in the area between 200 and low-200s over the same benchmark, a document from arranging banks said.

ICD is expected to complete the sale on Wednesday.

The dollar-denominated transaction will be benchmark-sized, although the document didn’t specify if this was meant for each tranche or both of them combined. Benchmark size is traditionally understood to mean in excess of $500 million.

ICD plans to conclude meetings with fixed income investors on Tuesday, the document said. The roadshows are being arranged by Citigroup, Dubai Islamic Bank, Emirates NBD , HSBC and Standard Chartered.