Bahrain’s Gulf International Bank (GIB) has set initial price guidance for a bond issue at 130 to 140 basis points above the Saudi interbank offered rate (Sibor).

The bond will be riyal denominated, with a tenor of three years and in the region of $500m, according to bankers close to the company. The bank completed a roadshow for Saudi investors in the first week of November, and should complete the bond issue before 10 November.

Appetite from investors has been strong, according to bankers in Saudi Arabia.

The bond will be offered through a private placement. This means it will be open to certain institutional investors and not traded on an exchange. GIB is owned by the the six GCC governments.

GIB has appointed the UK’s HSBC and its own GIB Financial Services to act as arrangers on the bond issue (MEED 1:11:09).