IsDB Issues US$ 1.25 Billion Fixed Rate Trust Certificates

Transcription

1. Sukuk : IsDB issues US$ 1.25 billion Fixed-Rate Trust Certificates Jeddah, Kingdom of Saudi Arabia 20 September 2017: The Islamic Development Bank (IsDB), rated Aaa/AAA/AAA by Moody’s, S&P and Fitch (all stable outlook), has successfully priced a US$1.25 billion, 5-year Trust Certificates (Sukuk) under its US$25 billion Trust Certificate Issuance Programme. The Sukuk was priced at par at 2.261%, to be payable on semi-annual basis. This issuance is the Bank’s second benchmark issuance in 2017 after its first issuance of the same amount in April 2017. Dubai Islamic PJSC, First Abu Dhabi Bank, Gulf International Bank BSC, HSBC Bank Plc, Malayan Banking Berhad, Natixis, Standard Chartered Bank, and Warba Bank acted as the joint lead managers and joint book runners. The mandate was announced on Thursday, September 14. Orderbook was opened with the release of the initial price thoughts on Monday, September 18 . The Sukuk was priced on Tuesday September 19, at Mid Swap (MS) plus 37 basis points (bps). It should be noted that the deal was priced at a lower spread compared with IsDB’s April 2017 issuance which was priced at MS + 40 bp. The ability of IsDB to issue a sizeable benchmark at a lower spread compared with IsDB’s April 2017 is a clear testament to IsDB’s strong credit and financial position, reaffirmed by its AAA ratings. The Trust Certificates will be listed on the London Stock Exchange, NASDAQ Dubai and Bursa Malaysia (under the Exempt Regime). In terms of the final allocation, 53% of the issue size was allocated to investors in EMEA, while 47% was allocated to Asia. In terms of type of Investors, the deal saw strong participation from real money accounts and official institutions providing credence to IsDB’s credit strength. 57% of issue size was allocated to central banks and official agencies, while 43% was allocated to Banks and Fund managers, compared to 88% and 22% respectively for the last deal in April. Dr. Zamir Iqbal, the Vice President, Finance, and CFO commented: "We are very pleased with the outcome of the deal which met our objectives for the transaction to continue building on the success of our prior deals, and we are also happy to see new investors subscribing in the Sukuk. I would like to thank the IsDB’s member countries
2. and other investors for their continuous support and commend the lead managers for delivering a deal that will make valuable contribution to meet our developmental objective .”