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| 30 April, 2018

Islamic Development Bank considers debut euro-denominated sukuk

Sukuk would be the multilateral development bank's first euro-denominated public debt sale.

Tunisia's Prime Minister Youssef Chahed (C) poses during a group photo at the 43rd Annual Meeting of the Islamic Development Bank Group (IsDB Group) in Tunis, Tunisia April 4, 2018. Image for illustrative purposes.

Tunisia's Prime Minister Youssef Chahed (C) poses during a group photo at the 43rd Annual Meeting of the Islamic Development Bank Group (IsDB Group) in Tunis, Tunisia April 4, 2018. Image for illustrative purposes.

REUTERS/Zoubeir Souissi

DUBAI- Saudi Arabia's Islamic Development Bank (IDB) has hired banks to explore the possibility of a euro-denominated sukuk issue, sources familiar with the matter said.

Should it go ahead, the sukuk would be the multilateral development bank's first euro-denominated public debt sale.

IDB will start meeting fixed-income investors in Europe on May 7. Citigroup, Credit Agricole and Societe Generale have been hired to arrange the meetings ahead of the potential deal, the sources said.

The planned Islamic bonds would have a maturity ranging between five and 10 years.

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The bank did not immediately respond to a request for comment.

IDB is a regular issuer of international 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 triple A rated Jeddah-based bank issued its latest international sukuk in March, when it raised $1.25 billion.

(Reporting by Davide Barbuscia; Editing by Mark Potter) ((Davide.Barbuscia@thomsonreuters.com; +971522604297; Reuters Messaging: davide.barbuscia.reuters.com@reuters.net))