BAKU, Azerbaijan, November 1. The Islamic Development Bank (IsDB) has completed its third public issuance of the year, raising €500 million from global capital markets, TurkicWorld reports via the IsDB.
The Bank, which holds a triple-A rating from S&P, Moody’s, and Fitch (all with a Stable Outlook), priced its 5-year Trust Certificates under its US$25 billion Trust Certificate Issuance Programme.
The issuance was led by a consortium of Joint Lead Managers, including Abu Dhabi Commercial Bank PJSC, BNP Paribas, Credit Agricole Corporate and Investment Bank, GIB Capital, ING, J.P. Morgan Securities plc, Landesbank Baden-Württemberg, and NATIXIS. This Euro-denominated issuance marks the Bank’s second consecutive benchmark-sized offering this month, following a successful US$1.25 billion issuance three weeks prior.
The proceeds from this issuance will be directed toward projects aligned with the Bank’s strategic objectives, which include boosting recovery, combating poverty and building resilience, and promoting green economic growth as part of its Realigned Strategy.
The mandate for this transaction was announced on October 29, to gauge market interest from investors. With a positive response, the Bank officially launched the transaction on October 30, with guidance set at 5-year EUR Mid Swap (MS) plus 50 basis points (bps). By 12:30 PM London time on the same day, the target benchmark size had been reached, and with a significantly oversubscribed order book, the Bank decided to maintain its final guidance. This resulted in an overall profit rate of 2.798%, payable annually, with the issuance priced at par.
The final allocation of the issuance was well-diversified, with 47% directed to the Middle East and North Africa, 42% to Europe, 11% to the UK and Ireland, and 1% to the CIS region. The deal attracted strong participation from real-money accounts and official institutions, including a notable number of first-time investors. Central banks and official institutions received 33% of the allocation, bank treasuries and private banks accounted for 39%, and asset managers, fund managers, and pension and insurance funds received 29%. This robust interest underscores the IsDB’s strong credit profile and reputation in the market.
