The Islamic Development Bank moved confidently back into global debt markets this week, pricing a $1 billion five-year US dollar sukuk after attracting demand that comfortably outpaced supply.
Investor appetite surged beyond $2.65 billion during the book-building process, a signal that high-grade Islamic paper continues to command strong attention despite a crowded issuance calendar. The tally included $50 million in joint lead manager participation.
The sukuk was priced at par, tightening from initial price thoughts that had circulated around the SOFR midswap plus 55 basis points area. Final pricing landed at 52 basis points over US Treasuries, while the semi-annual coupon and yield settled at 4.227%.
The issuance was arranged through IsDB Trust Services No.2 SARL, with the Islamic Development Bank serving as obligor under its wider $25 billion trust certificate programme.
A syndicate of international banks handled the transaction, including Bank of China, BMO Capital Markets, BNP Paribas, ICBC, JP Morgan, KIB Invest, Nomura and Standard Chartered Bank. Standard Chartered also acted as billing and delivery bank.
The sukuk carries top-tier credit ratings of Aaa, AAA and AAA from Moody’s, S&P and Fitch respectively, each maintaining stable outlooks.
Trading is expected on both Euronext Dublin and Nasdaq Dubai, extending the lender’s long-standing presence across international Islamic capital markets.
