Islamic Development Bank sells $1 billion sukuk

The Islamic Development Bank sold on Thursday $1 billion in Islamic bonds, a bank document showed, reports citing Reuters.

The Jeddah-based multilateral lender sold the sukuk at 62 basis points over five-year U.S. secured overnight financing rate (SOFR) mid-swaps, tightened from initial guidance in the mid-60s bps, the document showed.

The deal got more than $1.7 billion in demand, including $620 million in interest from lead managers.

BNP Paribas, Credit Agricole, Dukhan Bank, Goldman Sachs, The Islamic Corporation for the Development of the Private Sector, JPMorgan , Mizuho, SNB Capital and Standard Chartered were joint lead managers.

Issuers in the Gulf, where bond sales have plummeted this year amid rising interest rates and choppy markets, have pounced on windows of opportunity to issue.

Arada Developments, the largest developer in Sharjah in the United Arab Emirates, was also in the market with sukuk on Thursday, raising $100 million in a reopening of existing notes. Saudi Arabia raised $5 billion with sukuk and bonds on Tuesday.

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