DUBAI: First Abu Dhabi Bank (FAB), the largest lender in the United Arab Emirates, is expected to raise $750 million (Dh2.7 billion) in Islamic bonds, according to a document issued by one of the banks leading the deal.

The five-year sukuk offer buyers 130 basis points over mid-swaps, 20 basis points below the indicative price FAB proposed when it started marketing the notes earlier on Tuesday.

FAB, rated Aa3 by Moody’s and AA-(minus) by S&P and Fitch, is the first issuer in the Gulf to tap the international sukuk market this year.

S&P’s global head of Islamic finance, Mohammad Damak, said that sukuk issuance out of the Gulf is expected to increase this year if Brent oil prices fall below S&P’s forecast of $55 a barrel over a sustained period.

Brent crude oil futures were at $59.65 a barrel at 1233 GMT on Tuesday.

FAB’s debt sale, which will be finalised later on Tuesday, has attracted more than $2.4 billion in orders, the document said.

Dubai Islamic Bank, Emirates NBD Capital , First Abu Dhabi Bank, KFH Capital, NCB Capital Company, Sharjah Islamic Bank and Standard Chartered Bank have been mandated to arrange the issuance.