IDB to start $1.5bn bond roadshow on Sept. 2

BOND PROGRAMME: The Islamic bond program will be worth at least $500m. (Getty Images)

The Islamic Development Bank (IDB) will be meeting investors during the week to Sept 8 for the first tranche of a $1.5bn Islamic bond program which will be worth at least $500m, its treasurer said on Saturday.

The roadshow will start on Wednesday with the Saudi capital Riyadh, and then Kuala Lumpur, Singapore, Brunei, the United Arab Emirates, Switzerland, and finally London on Sept 8, Mohammad Tariq told Reuters.

"The offering is to be for a minimum of $500m but the actual size will depend on the market conditions which relate to the market demand and pricing at the time of issuance," he said.

HSBC, Deutsche Bank and BNP Paribas are lead arrangers with Malaysia's CIMB and Brunei Islamic Bank as co-arrangers for the sukuk which will have a three to five year maturity date to be decided, along with the pricing of the sukuk, depending on the investor base.

"Initial indications have been positive and we are hopeful that IDB's rating, support of its shareholders and balance sheet strenght will be seen as very positive indicators for the issue," Tariq said.

The Saudi-based triple-A lender plans to issue the sukuk as part of a $6bn Islamic bond program to soften the impact of the financial downturn on its members, which include some of the world's poorest nations. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM