The Islamic Development Bank (IsDB) has successfully priced a US$1.25 billion, five-year trust certificates (sukuk) under its US$25 billion Trust Certificate Issuance Programme. The certificates will be listed on the London Stock Exchange, NASDAQ Dubai and Bursa Malaysia (under the exempt regime).
Overall, the deal saw strong participation from money managers and
official institutions, which showed confidence in IsDB’s credit
strength. The sukuk were priced at par at 2.263%, to be payable on a semi-annual basis. This issuance marks the bank’s second benchmark issuance in 2016. In terms of the final allocation, the distribution was well diversified
with 72% allocated to the Middle East and North Africa (MENA) region,
25% to Asia and 3% to Europe, respectively. Central banks and official
agencies were allocated 90% followed by 10% to banks.
IsDB’s ability to issue a sizeable benchmark in a volatile
environment is a clear testament to its strong credit and financial
position, as affirmed by its AAA ratings. IsDB maintains ratings of Aaa,
AAA and AAA by Moody’s, S&P and Fitch respectively.
“We are very pleased with the outcome of the deal, which met our objectives for the transaction to continue building on the success of our prior deals,” said Dr Ahmet Tiktik, IsDB’s Acting VP of Finance and Chief Financial Officer. “I would like to thank IsDB’s member countries and other investors for their continuous support and commend the lead managers for delivering a deal that fully met our objectives. We hope that this further IsDB funding will continue to contribute towards
extending bigger financing to our member countries to support their developmental needs.”
The joint lead managers and joint bookrunners were Boubyan Bank, Credit
Agricole CIB, GIB Capital, JP Morgan, Mizuho Securities, National Bank
of Abu Dhabi, NATIXIS, RHB Investment Bank and Standard Chartered Bank.