Jeddah, 24.10.2010 : Islamic Development Bank ("IDB"), rated Aaa/AAA/AAA by Moody’s, S&P and Fitch (all stable outlook), has successfully priced a US$500.0 million, 5-year Trust Certificates (Sukuk) issuance under its recently upsized US$3.5 billion Trust Certificate Issuance Programme. CIMB, Citi, HSBC and Standard Chartered Bank acted as joint lead managers and joint bookrunners, and NCB Capital acted as co-lead manager for this transaction.
Bookbuilding began on Tuesday 19 October. Official price guidance was released at 8:00am London time on 19 October at the MS + 40bps - 50bps range while the book continued to grow to reach a significant size allowing IDB to price a US$500.0 million transaction at the tight end of guidance. The 5-year, fixed rate Trust Certificates were priced at par with a 1.775% semi-annual profit rate to yield 40bps over MS.
The success of IDB's transaction was underpinned by a comprehensive international roadshow covering Asia, the Middle-East and Europe. IDB’s AAA ratings made a compelling story for investors which participated strongly in the book notwithstanding the accelerated bookbuilding exercise and volatile market conditions. IDB achieved a quality orderbook with new investors from Asia and high allocation to real money accounts. Investors distribution was diverse with 54% of the Trust Certificates allocated to Middle-East investors, 34% to Asian investors and 12% to European investors.
The Trust Certificates will be listed on the London Stock Exchange and Bursa Malaysia under an Exempt Regime.
Dr Abdul Aziz Hinai, Vice President, Finance who led the IDB delegation for the roadshow commented: "I am pleased with the successful outcome of this Trust Certificates offering. I would like to thank all those who participated in this transaction, especially the lead managers for all their efforts."