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Sat 29 Aug 2009 09:05 PM

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

Saudi lender aiming to offer min $500m in first tranche, depending on market conditions.

The Islamic Development Bank (IDB) will be meeting investors during the week to Sept 8 for the first tranche of a $1.5 billion Islamic bond programme which will be worth at least $500 million, its treasurer said on Saturday.The roadshow will start on Wednesday in Riyadh, and then Kuala Lumpur, Singapore, Brunei, the UAE, Switzerland, and finally London on Sept 8, Mohammad Tariq told Reuters.

"The offering is to be for a minimum of $500 million 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 strength, 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 $6 billion 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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