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Financials

Islamic Development Bank picks arrangers for sukuk issue - sources

DUBAI, Feb 1 (Reuters) - Islamic Development Bank (IDB) has chosen eight banks to arrange a potential dollar-denominated sukuk for the Jeddah-based supranational institution, sources familiar with the matter told Reuters on Monday.

The AAA-rated IDB has picked Boubyan Bank, CIMB, Commerzbank, Emirates NBD, Gulf International Bank, JP Morgan, Natixis and Standard Chartered to arrange the transaction, two sources with direct knowledge of the matter said, on condition of anonymity as the information is not yet public.

The bank is planning the benchmark-sized sukuk offering in the first quarter, they added. Benchmark size is traditionally understood to be upwards of $500 million.

IDB was not immediately available for comment.

IDB, which last issued a $1 billion five-year Islamic bond in March 2015, is looking to increase its issuance of sukuk, partly to raise its profile among international investors and to secure similar pricing levels to other development banks. (Additional Reporting by Bernardo Vizcaino; Editing by David French)

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