September 19, 2018 / 3:07 PM / 3 months ago

Islamic Development Bank issues $1.3 billion sukuk

DUBAI, Sept 19 (Reuters) - 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.

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

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