Islamic Development Bank (IDB) has successfully launched a $850 million 5-year Sukuk transaction under it's recently updated US$ 1.5 billion Trust Certificate Issuance Programme with BIBD, BNP Paribas, CIMB, Deutsche Bank and HSBC as joint lead managers, The 5-year fixed Sukuk was priced at par with a 3.172 percent semi-annual profit rate to yield 40bps over 5 year mid-swaps and 77bps over 5 year benchmark US Treasuries respectively. The success of IDB's transaction was due to a comprehensive roadshow undertaken in Asia, Middle East and Europe. IDE's AAA ratings and the scarcity value of the sukuk made a compelling story, The transaction order book was over 2.4x oversubscribed with 90 orders. Investor distribution was diversified with over 60 percent of the paper placed outside the GCC region. In terms of the geographic split, Asian investors accounted for 37 percent, European investors 24 percent, GCC region 37 percent and others 2 percent. IDB achieved a high quality order book with the vast majority allocated to real money accounts. Dr Aliul Aziz Al-Hinai, IDB vice president led the senior management roadshow.
