There is a possibility that a sum of $1 billion (Dh3.67bn) will be raised by Abu Dhabi-based Tourism Development and Investment Company (TDIC) in an Islamic bond offer.

Two bankers, acquainted with the matters of the bank, informed that in order to manage the sale, HSBC, Abu Dhabi Commercial Bank and Standard Chartered have been appointed by the company.

The sale by TDIC is being viewed as the biggest Islamic bond offering from the UAE in more than a year, after the global credit crisis.

In August 2008, approx Dh4bn of Islamic bonds were sold by the Sorouh Real Estate Company, another Abu Dhabi-based property firm, with the aim of financing new developments.

In June, TDIC sold $1bn of five-year conventional bonds, which were priced to give 390 basis points over benchmark treasuries.

"The Abu Dhabi Government and its state-affiliated firms are leading a borrowing surge from the Gulf this year. TDIC's issue follows recent state bond sales from Abu Dhabi Government, Mubadala and Aldar Properties," said the banker.