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|19 September, 2018

Islamic Development Bank issues $1.3bln sukuk

The deal was marketed earlier this week with an initial price guidance in the high 30 basis points over mid-swaps

An engraved logo of the Islamic Development Bank Group is seen at the door of the bank in Jeddah, Saudi Arabia May 31, 2018.

An engraved logo of the Islamic Development Bank Group is seen at the door of the bank in Jeddah, Saudi Arabia May 31, 2018.

REUTERS/Reem Baeshen

DUBAI: The Jeddah-based Islamic Development Bank (IsDB) has raised $1.3 billion in senior, unsecured sukuk, according to a bank document seen by Reuters.

IsDB, a triple-A rated institution, 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 yield curve.

The new transaction, priced on Wednesday, has a five-year maturity and a profit rate of 3.389 percent, corresponding to a spread of 32 basis points over mid-swaps.

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The deal was marketed earlier this week with an initial price guidance in the high 30 basis points over mid-swaps.

CIMB, Citi, Dubai Islamic Bank, Gulf International Bank, HSBC, LBBW, Natixis, and Standard Chartered Bank arranged the bond sale.

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