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$1 bilion bond set

DUBAI: Islamic mortgage lender Tamweel, badly hit by the global financial crisis and the region's property bust, has set up a $1 billion bond programme, according to a base prospectus.

Tamweel will complete investor meetings in London on Monday, along with its parent company Dubai Islamic Bank, after which it may issue an Islamic bond, or sukuk, guaranteed by DIB.

Standard Chartered, Citi and DIB itself are the arrangers and dealers on the programme, according to the prospectus.

Bond investors would have demanded a high premium on Tamweel bonds, without a guarantee from DIB. The Islamic lender ran into trouble when Dubai's real estate sector collapsed in 2008 and its shares were halted for more than two years, only resuming trade last May.

Last year, DIB raised its stake in Tamweel to 57.33 per cent, effectively rendering the mortgage lender a subsidiary of the bank and raising investor confidence in Tamweel.



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