Tuesday, Sep 01, 2009
(This story was originally published Monday)
DUBAI (Zawya Dow Jones)--Saudi-based Islamic Development Bank, or IDB, will start the roadshow for its planned sukuk, or Islamic shariah-compliant bond, on Sept.2, the company's treasurer said Monday.
The roadshow for the bond offering, worth a minimum of $500 million, will kick off in Riyadh and also take in Kuala Lumpur, Singapore, Brunei, the United Arab Emirates, Switzerland, and finally London on Sept. 8, Mohammad Tariq told Zawya Dow Jones by email.
"The size of the offering may increase depending on the pricing and investors' interest. So far the indications are very positive," he said.
IDB said previously it planned to issue sukuks worth $6 billion to $7 billion over the next five years to boost project financing in Islamic countries in the aftermath of the global financial crisis.
The Islamic bonds - the multilateral lender's third such issuance - will likely carry a tenor of between three and five years.
HSBC, Deutsche Bank and BNP Paribas are lead arrangers with Malaysia's CIMB and Brunei Islamic Bank co-arrangers for the sukuk.
Moody's Investors Service said last week IDB plans to launch a $1.5 billion sukuk MTN program. It said it has assigned the sukuk an Aaa rating, with a stable outlook.
IDB's main shareholders are the governments of Egypt, Indonesia, Iran, Kuwait, Libya, Pakistan, Saudi Arabia, Sudan, Turkey and the U.A.E
-By Summer Said, Dow Jones Newswires; +9714 364 4963; summer.said@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
(END) Dow Jones Newswires
01-09-09 0408GMT
