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| 18 September, 2018

Islamic Development Bank gives price guidance for new dollar sukuk

The new senior, unsecured bonds, expected to price later on Wednesday, will be of benchmark side, which generally means upwards of $500mln

Delegates chat near a banner as attend the 41st annual meeting of the Islamic Development Bank (IDB) at the Jakarta Convention Center in Jakarta, Indonesia, May 18, 2016.

Delegates chat near a banner as attend the 41st annual meeting of the Islamic Development Bank (IDB) at the Jakarta Convention Center in Jakarta, Indonesia, May 18, 2016.

REUTERS/Indonesia

DUBAI - The Jeddah-based Islamic Development Bank (IsDB) has given initial price guidance in the high 30 basis points over mid-swaps for a planned sale of five-year U.S. dollar-denominated sukuk, a document by one of the banks leading the deal showed.

IsDB is a regular issuer of international sukuk, or Islamic bonds, which it raises to fund its business activities and to promote the international sukuk market by building a liquid sukuk yield curve.

The new senior, unsecured bonds, expected to price later on Wednesday, will be of benchmark side, which generally means upwards of $500 million.

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CIMB, Citi, Dubai Islamic Bank, Gulf International Bank, HSBC, LBBW, Natixis, and Standard Chartered Bank are the banks leading the deal.

(Reporting by Davide Barbuscia; editing by Jason Neely) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))