Islamic Development Bank Gives Initial Price Guidance for 5-year Sukuk 

The Islamic Development Bank (IsDB) has placed an initial price guidance for five-year tenured Sukuk at around mid-60s basis points over the five-year U.S. secured overnight financing rate (SOFR) and the offering is expected to be priced on the 20th of October 2022, according to a bank document.

Why it Matters?

Considering markets volatilities and rising interest rates in 2022, new bond issues in the Gulf region have fallen precipitously. The 18th of October 2022, however, saw three issuances as Saudi Arabia raised USD 5 billion through Sukuk and bonds, Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi, raised USD 1 billion, and Dubai’s Emirates NBD offered USD 500 million.

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