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The Islamic Development Bank (IsDB), rated AAA by Moody’s, S&P and Fitch, all with a stable outlook, has issued a mandate for a five-year benchmark US dollar Reg S sukuk with IPTs at a secured overnight financing rate (SOFR) with mid-swaps plus 58 bps.
Headquartered in Saudi Arabia, the bank, which comprises 57 shareholding member states, said the issuance will come under its 25 billion Trust Certificate Issuance Programme.
The sukuk will have a fixed, semi-annual profit rate and will be priced on June 17.
It will be listed on Euronext Dublin and Nasdaq Dubai.
BBVA, BMO Capital Markets, Citi, Emirates NBD Capital, Goldman Sachs International, NATIXIS, Societe Generale and Standard Chartered Bank have been appointed Joint Lead Managers.
Formed in 1975, the multilateral development finance institution lists Saudi as its major shareholder, with prominent member states including Libya, Indonesia, Iran, Qatar, Egypt, Kuwait and the UAE.
In March, IsDB raised $1.75 billion through a benchmark sukuk issuance, its first US dollar benchmark issuance of 2025, following last year's three public benchmark transactions.
(Writing by Bindu Rai, editing by Seban Scaria)
