The Islamic Development Bank, a Jeddah-based multilateral lender, has launched a $2 billion U.S. dollar-denominated five-year Islamic bond, or sukuk, with demand exceeding $2.4 billion, fixed-income news service IFR reported on Wednesday.

The bonds were launched at 50 bps over U.S. SOFR mid-swap, down from the initial guidance of 55 bps over the same benchmark reported by IFR on Tuesday. Allocation and pricing of the debt offering is expected to happen later in the day, IFR said.

(Reporting by Shamsuddin Mohd Editing by Peter Graff)