October 31, 2018 / 8:59 AM / 21 days ago

Islamic Development Bank to sell 500 million euro sukuk

DUBAI, Oct 31 (Reuters) - The Jeddah-based Islamic Development Bank (IsDB) is selling euro-denominated sukuk expected to be 500 million euro ($567 million) in size, a document by one of the banks leading the deal showed on Wednesday.

IsDB, a triple-A rated institution, is a regular issuer of international sukuk, or Islamic bonds, which it raises to fund its business activities and to promote the international sukuk market by building a liquid yield curve.

The sukuk, or Islamic bonds, are marketed with a price guidance of around 22 basis points over mid-swaps.

Credit Agricole, LBBW, Natixis and Standard Chartered are arranging the transaction, which will be finalised later on Wednesday.

Last month IsDB raised $1.3 billion in senior, unsecured sukuk with a five-year maturity and a profit rate of 3.389 percent, corresponding to a spread of 32 basis points over mid-swaps. ($1 = 0.8804 euros) (Reporting by Davide Barbuscia; Editing by Alison Williams)

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