DUBAI: Dubai Islamic Bank (DIB) has mandated five banks for an Islamic bond, or sukuk, due to be issued at the end of May, three sources familiar with the matter said yesterday.

The lender has picked HSBC, National Bank of Abu Dhabi, Emirates NBD, Deutsche Bank and itself for the deal, the sources said.

One of the sources added the sukuk was likely to be a benchmark-sized, five-year issue.

Benchmark usually means at least $500 million.

Two of the sources said the sukuk was expected to launch at the end of May.

Strong regional interest and significant global Islamic liquidity are likely to support any potential issue from the bank.

The lender last tapped debt markets in 2007 with a $750m sukuk arranged by Barclays, Citi and Standard Chartered. The bond was repaid earlier this year.