Islamic Development Bank prices $800 mln 5-year Sukuk

The Islamic Development Bank (IDB) priced an $800 million five-year Sharia-compliant bond, or Sukuk, lead arrangers said, in its first public debt issuance in over a year. The size of the Sukuk was increased to $800 million from $750 million at launch, indicating string demand for the sale, and the issue carries a profit rate of 1.357 percent. The Sukuk priced at a spread of 40 basis points over midswaps. Qatar\'s Barwa Bank, BNP Paribas, CIMB, HSBC, NCB Capital and Standard Chartered are joint lead arrangers and bookrunners on the deal. Abu Dhabi-based lender Al Hilal joined the deal as co-lead manager. IDB, rated AAA, last tapped debt markets in May 2011, when it priced a $750 million five-year Sukuk at a spread of 35 basis points over midswaps to yield 2.35 percent. IsDB is a multilateral development financing institution located in Jeddah. It was founded by the first conference of Finance Ministers of the Organisation of the Islamic Conference (OIC, now the Organisation of Islamic Cooperation), convened on 18 December 1973. The bank officially began its activities on 20 October 1975. (QNA)