Islamic Development Bank set to raise $1.10bln in euro green sukuk

The triple-A rated financial institution is offering investors 28 basis points over mid-swaps for the debt sale.

  
A LONDON BANK WORKER COUNTS OUT EURO NOTES. Image used for illustrative purpose.

A LONDON BANK WORKER COUNTS OUT EURO NOTES. Image used for illustrative purpose.

REUTERS/Russell Boyce

DUBAI - Jeddah-based Islamic Development Bank is set to raise 1 billion euro ($1.10 billion) through five-year "green" sukuk, or Islamic bonds, a document showed on Wednesday.

The triple-A rated financial institution is offering investors 28 basis points over mid-swaps for the debt sale.

Green bonds are a growing category of fixed-income securities, and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries.

($1 = 0.9073 euros)

(Reporting by Davide Barbuscia; Editing by Kevin Liffey) ((sylvia.westall@thomsonreuters.com; Dubai Newsroom +971 4453 6488; Reuters Messaging: sylvia.westall.thomsonreuters.com@reuters.net))


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