Jeddah, 23.5.2011: AAA-rated Islamic Development Bank’s (IDB) resource mobilization road show through Middle East, Asia and Europe, which recently ended in London successfully bagged US$750m. The 5-year Trust Certificates (Sukuk), released as part of its 3.5 billion dollar Sukuk Issuance Program, were issued at par with a 2.35% semi-annual profit rate. The Trust Certificates will be listed on the London Stock Exchange and Bursa Malaysia.

The issuance was arranged by BNP Paribas, Deutsche Bank, HSBC and Standard Chartered Bank.

Despite the volatile global economic environment, IDB achieved both a large deal size as well as tight pricing than previous issues, with the deal pricing 3bps inside the secondary market levels. This is an important achievement and evidence of IDB’s proximity to supranational peers in this field.

IDB’s Aaa/AAA/AAA ratings with stable outlook by Moody’s, S&P and Fitch, strong financial position and relative insulation from regional events made a compelling story for investors who participated actively in the book. The issue saw strong participation from the Asia and the MENA region with good interest from European and US offshore investors based on allocations of 26%, 53%, 16% and 5% respectively. The deal also revealed encouraging participation from real money accounts and official institutions along with strong first time participation from supranational institutions.

Commenting on the success of the issuance, Dr. Abdul Aziz Al-Hinai, Vice President, Finance, expressed delight on the outcome of the deal, and stated that he was particularly happy to see a number of new accounts come into IDB Sukuk Issuance for the first time.