DUBAI: Islamic Development Bank (IsDB), a Jeddah-based multilateral institution, raised $1bn from the sale of a five-year Islamic bond, or sukuk, at par yesterday, overcoming a sell-off across global credit markets.
The senior, unsecured notes priced at a profit rate of 1.535 percent, arranging banks said. The bank had earlier set final guidance for the issue at a spread of 30 basis points over midswaps.
Order books for the deal had reached just under $1.5bn ahead of launch. The bank’s strong credit rating — AAA — and substantial regional support may have made it immune from general market volatility. Credit markets took a battering on Wednesday on the back of the biggest rise in treasury yields in a year the previous day.
As at 1130 GMT, 10-year treasury yields were 15 basis points higher at 2.16 percent.
Improved housing data and strong consumer confidence contributed to the sell-off.
Reuters
