* Sukuk to help repay $2 bln redemption
* Profit rate guidance at 7-7.25 pct
* Order books at $1.75 billion
* 7.5 bln dirham sukuk to be repaid early
(Adds detail, background)
DUBAI, June 12 (Reuters) - Jebel Ali Free Zone (JAFZA), a
state-owned industrial park, plans to issue a $650-million,
seven-year Islamic bond as early as Tuesday to help refinance an
upcoming maturity and has set initial price guidance for the
deal, arranging banks said.
Profit rate guidance for the sukuk is indicated at between 7
and 7.25 percent and the new issue had attracted orders of about
$1.75 billion at 1200 GMT on Tuesday, according to an update
from lead arrangers.
Books are due to close at 1300 GMT.
JAFZA, part of Dubai's flagship Dubai World conglomerate, is
putting together a financing package to meet a $2.04 billion
Islamic bond which matures in November.
The company plans to raise $1.85 billion towards redemption
of the sukuk through this new issue and a $1.2 billion Islamic
The remainder will be paid through JAFZA's cash balance.
The original dirham-denominated bond is expected to be
repaid two days after the new $650 million deal settles, lead
arrangers said. Bondholders voted last month to let JAFZA repay
the debt early.
On Tuesday, the bond was bid at close to
par at 99.150 and was yielding 4.9 percent, according to Thomson
Reuters data. Yields have fallen from near 10 percent levels at
the end of the first quarter as a lack of clarity on repayment
Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank
, National Bank of Abu Dhabi, Citi,
Dubai Islamic Bank, Emirates NBD, Samba
Financial Group and Standard Chartered are
bookrunners on the sukuk.
($1 = 3.6730 UAE dirhams)
(Reporting by Rachna Uppal and David French; Editing by Amran