Saudi Islamic Development Bank Prices US$ 800 Mln Sukuk

Saudi-based Islamic Development Bank (IDB) priced an US$800 million five-year sharia-compliant bond, or sukuk, on Tuesday, lead arrangers said, in its first public debt issuance in over a year.

The size of the sukuk was increased to US$800 million from US$750 million at launch, indicating string demand for the sale, and the issue carries a profit rate of 1.357 percent.

The sukuk priced at a spread of 40 basis points over mid-swaps.

Qatar’s Barwa Bank, BNP Paribas, CIMB, HSBC, NCB Capital and Standard Chartered are joint lead arrangers and book-runners on the deal. Abu Dhabi-based lender Al Hilal joined the deal as co-lead manager.

IDB, rated AAA, last tapped debt markets in May 2011, when it priced a US$750 million five-year sukuk at a spread of 35 basis points over mid-swaps to yield 2.35 percent, Reuters reported.