DUBAI: Dubai Islamic Bank (DIB) has narrowed pricing guidance for a US dollar-denominated sukuk issue which is due to price later on Tuesday, a document from lead arrangers showed.

The five-year Islamic bond is now earmarked to price at 235 basis points over midswaps plus or minus 5 bps, according to the document, which added that investor orders, including those from the arrangers, totalled more than $1 billion.

This is inside indicative pricing of the 245 bps area over the same benchmark announced earlier in the day.

The final size of the deal is expected to be “in the context of $500 million”, the document added. Benchmark size is usually understood to mean at least $500 million.

DIB’s transaction is being arranged by seven banks: Bank ABC, DIB, Emirates Islamic Bank, HSBC, National Bank of Abu Dhabi, Sharjah Islamic Bank and Standard Chartered.