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)
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