Published: July 13, 2009
At the third annual London Sukuk Summit, Mohammad Tariq, treasurer of the Islamic Development Bank, announced that IDB selected lead managers to arrange its US$500mn sukuk.
Lead managers are Deutsche Bank, HSBC and BNP Paribas, with CIMB and Bank Islam as joint managers. Tariq expects the issue to be complete in the middle of July . The sukuk will likely carry a tenor of between three and five years.
IDB has ‘AAA’ rating from all three major rating agencies. “We can issue papers anywhere and we will issue more sukuk in the near future,” Tariq told delegates at the Sukuk Summit. Tariq also announced that IDB will buy a longer term paper next year under rule 144.
At a press conference a week earlier, Ahmad Mohamed Ali, the bank’s president, said that IDB plans to issue US$6bn worth of sukuk over the next five years in order to finance its programmes.
The membership of the bank consists of 56 countries, with eight of them holding more than 80% of the shares.