Abu Dhabi’s First Gulf Bank has received orders totalling $1.4bn for its $500m sukuk priced at 287.5 basis points above the mid-swap rate.

The deal priced below a sukuk issue by Emirates Islamic Bank, a subsidiary of Dubai government controlled Emirates NBD, which raised $500m at a rate of 350 basis points above the mid-swap rate.

The deal showed the different risk perception of investors between Dubai and Abi Dhabi-based banks. The EIB deal built up an order book of $1.5bn, with 57 per cent of the investors in the issue coming from the Middle East.

Mortgage provider Tamweel, which is majority owned by Dubai Islamic Bank (DIB), is also planning to issue a $300m sukuk that bankers expect to be priced at about 400 basis points above the midswap rate. The US’ Citigroup, DIB and the UK’s Standard Chartered are arranging the deal.

The sukuk issues are part of a flood of new deals expected from UAE banks eager to boost their liquidity in the face of slow deposit growth and rising loan to deposit levels across the banking sector.