The Commercial Bank of Dubai has set the price of its US$500 million international bond issue after the launch of the deal at the higher end of the price guidance, showing healthy investor demand.

The five year bond would be priced at a spread of 250 basis points over midswaps, which is at the lower end of the guidance indicated between 250 to 270 basis points according to the coordinating banks.

According to the traders, with the current rates, the spread would equate to a yield of just a liitle under 3.5%. 

Many banks from the Gulf Arab states have increased their bond sales in 2013, with a clear investor hunger for bonds issued by financial institutions in the region. In total, there has been over US$5 billion dollar denominated bonds issued by far this year.

The Investment Corp of Dubai has a 20% share in the Commercial Bank of Dubai, with the proceeds of the bond issue to be used for its general corporate purposes.