TLDR:
Books open on Jeddah sukuk
Islamic bank’s €500m issuance priced
Wakala sukuk listing in Dublin, Dubai
JEDDAH (The Thursday Times) — The Jeddah-based Islamic Development Bank has moved forward with the issuance of a fresh Euro-denominated sukuk under its substantial $25 billion Trust Certificate Issuance Programme. Guidance has placed the senior unsecured offering at around mid-swaps plus 50 basis points. This latest sukuk represents another milestone for the Islamic Development Bank following its previous benchmark public issuance earlier in May, which raised $2 billion in fresh funding.
Mid-swaps pricing for senior unsecured sukuk
In an ambitious move, the Islamic Development Bank (IsDB) has issued the Regulation S Euro-denominated sukuk to expand its portfolio of financing. Structured as a five-year senior unsecured instrument, the sukuk has been priced with a spread of mid-swaps plus 50 basis points. This pricing reflects a favourable demand climate for Sharia-compliant financing products, particularly in the European markets, where the IsDB maintains a steady investor base. The size of this issuance is set at EUR 500 million, backed by books exceeding EUR 510 million, which includes joint lead manager (JLM) interest.
Expanded issuance follows a successful programme
The sukuk is part of IsDB’s expansive $25 billion Trust Certificate Issuance Programme, which provides the flexibility to raise capital while aligning with Islamic finance principles. This programme has proven instrumental in funding IsDB’s long-term development projects across multiple sectors, primarily in the Muslim-majority countries. The bank’s earlier issuance in May, which raised a landmark $2 billion, signalled a strengthening interest in sukuk as an alternative to conventional financing, highlighting the institution’s role as a leading issuer in Islamic finance.
Strategic listing on multiple exchanges
The new issuance also brings notable updates in listing strategy, with the sukuk set to debut on both Euronext Dublin and Nasdaq Dubai. This dual listing approach underscores the Islamic Development Bank’s commitment to reaching a diverse base of investors by facilitating access across regional markets. By listing on major financial exchanges, IsDB’s sukuk offers attractive liquidity opportunities to investors, making the sukuk a flexible addition to diversified portfolios.
Broad management for global outreach
A cadre of renowned financial institutions has been appointed as joint lead managers, including Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB, GIB Capital, ING, J.P. Morgan, Landesbank Baden-Württemberg, and NATIXIS. This multi-manager approach leverages the expertise and networks of each institution, ensuring the sukuk’s successful placement across European and Middle Eastern markets.
