Al Hilal Bank, owned by Abu Dhabi government is planning to sell a 5-year Islamic bond, or sukuk, in the fourth quarter in a bid to raise $500 million. An undisclosed official of the bank said that bank's sukuk program is expected to be between $2 billion and $5 billion and the current issue is the first tranche of global sukuk.

Al Hilal's Chief Executive Mohammad Berro told that the funds would be used for diversifying bank's business and to push its growth. Berro said, "We are hoping to close the issue by the end of the last quarter this year."

Abu Dhabi Bank, wholly owned by the Abu Dhabi Investment Council (ADIC), is looking forward for taking advantage of growing consumer confidence in the region despite volatility in the global market following recessionary signs from the USA and Western World.

It is to be noted that UAE lender First Gulf Bank raised $650 million from the sale of five-year Islamic bonds in July making adequate advantage of solid global demand for Sharia-compliant paper.

Sarie Arar, the head of wholesale banking at Al Hilal hoped that the bond issue will help it to build a track record among international credit markets.