DUBAI- The Jeddah-based Islamic Development Bank on Wednesday sold $1.7 billion in five-year Islamic bonds at 25 basis points over mid-swaps, a bank document showed.

The multilateral development bank was expected to raise $1.5 billion through the sukuk sale, another document also from one of the banks on the deal showed earlier.

The spread was tightened from initial guidance on Tuesday of around 30 bps over mid-swaps after the sukuk drew more than $2.4 billion in demand. 

Credit Agricole, First Abu Dhabi Bank, HSBC, the Islamic Corporation for the Development of the Private Sector, JPMorgan, KFH Capital, Natixis, SMBC Nikko  and Standard Chartered arranged the debt sale.

The Islamic Development Bank, which is rated AAA by all three major ratings agencies, is a regular issuer in the debt capital markets.

It raised $2.5 billion in March with sustainability sukuk, which can finance projects including renewable energy. IsDB also sold $1.5 billion in sukuk in June last year.

(Reporting by Yousef Saba; Editing by Alison Williams and Louise Heavens) ((; +971562166204;