Dubai: Emirates Islamic, Dubai’s second-biggest Sharia-compliant lender, has mandated banks including HSBC Holdings Plc for the sale of Islamic bonds, according to two people familiar with the issue.

The sale of the dollar-denominated, benchmark-sized securities may begin as early as this week, said the people, asking not to be identified because the information is private. Standard Chartered Plc, Emirates NBD PJSC, Dubai Islamic Bank PJSC, Noor Bank PJSC and Bank ABC are also helping to arrange the sale, according to the people.

Emirates Islamic last sold bonds in July 2012, when it raised $500 million (Dh1.8 billion) from securities with maturity of between five and six years. The lender carries the fifth-highest investment grade rating from Fitch Ratings Ltd., according to data compiled by Bloomberg.

Sales of Islamic bonds in the six-nation Gulf Cooperation Council, which includes the two-biggest Arab economies of Saudi Arabia and the UAE, have climbed 4 per cent this year to $3.1 billion, according to data compiled by Bloomberg. Banks in the GCC have been some of the biggest sellers of bonds in the region to boost capital and lending, with Kuwait’s Boubyan Bank and Bank Muscat SAOG selling bonds in the past month.

A benchmark-sized issue usually raises about $500 million.

Spokesmen for Emirates NBD, EI’s parent, HSBC, Bank ABC and Dubai Islamic Bank declined to comment. A spokesman for Standard Chartered didn’t immediately respond to a phone call seeking comment while a spokesman for Noor Bank wasn’t immediately available.