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The Islamic Corporation for the Development of the Private Sector (ICDPS), rated A2 (Stable) by Moody’s, A (Stable) by S&P and A+ (Stable) by Fitch, priced its benchmark five-year $500 million Reg S senior unsecured sukuk at +65 basis points over US Treasuries, with a coupon rate of 4.391% paid semi-annually in arrear.
Headquartered in Saudi Arabia, the multilateral development financial institution tightened the price from a +95bps area for its no-grow wakala / murabaha structure.
At launch, books were in excess of $2billion, excluding JLM interest.
ICDPS, whose shareholders include the Islamic Development Bank Group, 56 Islamic countries, and five public financial institutions, mandated Al Rayan Investment, Bank ABC, Dubai Islamic Bank, GIB Capital, HSBC, KFH Capital, JP Morgan, Sharjah Islamic Bank, Standard Chartered Bank and Warba Bank as Joint Lead Managers and Joint Bookrunners.
ICDPS Sukuk Limited is the issuer of the sukuk, with the parent company named obliger. The expected issue rating is A / A+ (S&P/ Fitch), with a settlement date of October 9.
The sukuk, which comes under ICDPS Sukuk Limited’s Trust Certificate Issuance Programme, will be listed on Euronext Dublin and Nasdaq Dubai, as an exempt offeror.
ICDPS member states, which includes all six GCC nations, established the institution in 1999 to provide financing for private sector projects in member countries, promote competition and entrepreneurship, and encourage cross border investments.
(Writing by Bindu Rai, editing by Seban Scaria)
