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Islamic Development Bank in talks for Q1 sukuk issue

Jeddah-based Islamic Development Bank (IDB) has invited banks to pitch for roles in arranging a potential dollar-denominated sukuk, sources familiar with the matter told Reuters on Thursday.

The AAA-rated IDB is planning a benchmark-sized sukuk offering in the first quarter, two sources with direct knowledge of the deal said, on condition of anonymity as the information is not yet public.

Benchmark size is traditionally understood to be upwards of $500 million.

IDB was not immediately available for comment.

IDB, which last issued a $1 billion five-year Islamic bond in March, is looking to increase its issuance of sukuk, partly to raise its profile among international investors and to secure similar pricing levels to other development banks.

Source: Reuters