The Islamic Corporation for the Development of the Private Sector (ICDPS) has priced a five-year, $500 million benchmark sukuk, drawing robust investor appetite that pushed initial orders beyond $2 billion.
Rated A2 (Moody’s), A (S&P), and A+ (Fitch), the sukuk carries a 4.391% semi-annual coupon, priced at 65 basis points over U.S. Treasuries, tightening from the initial 95bps guidance. The structure follows a no-grow wakala/murabaha format, reflecting ICDPS’s conservative but strategic approach to Islamic finance.
The issuance, under ICDPS Sukuk Limited’s Trust Certificate Programme, will trade on Euronext Dublin and Nasdaq Dubai as an exempt offeror, with settlement slated for October 9. The parent ICDPS company acts as the obliger, with expected issue ratings of A/A+ (S&P/Fitch).
A wide syndicate of banks—Al Rayan Investment, Bank ABC, Dubai Islamic Bank, GIB Capital, HSBC, KFH Capital, JP Morgan, Sharjah Islamic Bank, Standard Chartered, and Warba Bank—served as Joint Lead Managers and Bookrunners.
Founded in 1999 by six GCC countries, ICDPS aims to finance private sector projects, boost cross-border investments, and foster entrepreneurship among its member states, which include the Islamic Development Bank Group, 56 Islamic countries, and five public financial institutions.
