DUBAI: The Jeddah-based Islamic Development Bank has launched a $1.5 billion, five-year sukuk issue which will price shortly, a document from lead managers said on Thursday.
The transaction, the AAA-rated lender's first in 2014, will price at a spread of 23 basis points over midswaps, the document said.
Pricing is inside the guidance given by lead managers on Tuesday, which indicated that a benchmark-sized sukuk would price in the mid-to-high 20s over the same benchmark.
Benchmark-sized is traditionally understood to mean in excess of $500 million.
The banks arranging the transaction are CIMB, Commerzbank, First Gulf Bank, HSBC, Natixis, National Bank of Abu Dhabi and Standard Chartered. (Reuters)