Jeddah-based bank lists biggest Islamic bond on Nasdaq Dubai

Proceeds will be used to support green, social development projects

  
Image used for illustrative purpose. A security officer stands guard outside the Nasdaq MarketSite in New York's Times Square, August 23, 2013.Image used for illustrative purpose

Image used for illustrative purpose. A security officer stands guard outside the Nasdaq MarketSite in New York's Times Square, August 23, 2013.Image used for illustrative purpose

REUTERS/Andrew Kelly

Nasdaq Dubai said on Monday that it has welcomed the listing of a $2.5 billion sustainability sukuk, or Islamic bonds, by Jeddah-based Islamic Development Bank (IsDB).

The issuance is the development bank’s biggest dollar listing to date. Its proceeds will be used to support green and social development projects.

The bank has been an issuer of bonds. Last year, it made two listings, one is a $2 billion sukuk priced at a profit rate of 1.809 percent and the other, a $1.5 billion bond to support COVID-19 relief efforts.

The latest is a five-year sukuk priced at par with a profit rate of 1.262 percent, payable on a semi-annual basis.

“This is the second AAA-rated sukuk issuance under the sustainable finance framework of IsDB and is the bank’s biggest Us dollar public issuance to date,” Nasdaq Dubai said.

The first of IsDB’s sukuk listings on Nasdaq Dubai was a $1 billion instrument that listed in 2015.

“With this latest addition, the total value of IsDB sukuk listed on Nasdaq Dubai is 17.14 billion US dollar through 12 tranches,” Nasdaq said.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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