C

Islamic Development Bank sells $2.5 bln in sustainability sukuk

Credit: REUTERS/DADO RUVIC

By Yousef Saba

DUBAI, March 24 (Reuters) - Jeddah-based Islamic Development Bank (IsDB) on Wednesday raised $2.5 billion via a five-year sustainability sukuk, or Islamic bond, at 33 basis points (bps) over mid-swaps, a document showed.

The spread tightened from initial guidance on Tuesday of 39 bps over mid-swaps after IsDB received more than $2.65 billion in orders for the sale, according to the document issued by one of the banks on the deal and seen by Reuters.

The proceeds will be used for general corporate purposes or to finance or refinance eligible projects in accordance with IsDB's sustainable finance framework, the preliminary prospectus for the sukuk showed.

Under the framework, sustainability sukuk can finance green projects such as those focused on renewable energy and sustainable water and wastewater management, or social projects including affordable housing and access to essential services.

IsDB, which is triple-A rated, is a regular issuer in the capital markets and raised $3.5 billion across two sukuk deals last year. The development bank issued 1 billion euro of green sukuk in November 2019 under its sustainable finance framework.

Citi C.N, HSBC HSBA.L, Goldman Sachs GS.N, Natixis CNAT.PA, Societe Generale SOGN.PA, Standard Chartered STAN.L and Warba Bank WARB.KW arranged the deal.

(Reporting by Yousef Saba; Editing by Alison Williams and Hugh Lawson)

((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.