Saudi-based development bank issues RM350mil sukuk

Jul 01, 2016

KUALA LUMPUR: Saudi Arabia-based Islamic Development Bank (IsDB), whose shareholders comprise the 57 member countries of the Organisation of Islamic Cooperation, has issued a RM350mil Sukuk Wakalah via its special purpose vehicle, Tadamun Services Bhd.

RHB Investment Bank Bhd, CIMB Investment Bank Bhd and Maybank Investment Bank Bhd, were appointed as joint lead managers, joint principal advisers and joint lead arrangers for the sukuk issuance.

IsDB president Dr Ahmad Mohamed Ali said the the successful issuance of the ringgit denominated sukuk was testimony to the increasing interest shown by investors for Islamic bonds.

“We will continue to work with our partners to strengthen the sukuk market for the benefit of our clients around the world,” he said in a statement on Friday.

IsDB said the sukuk issuance had received the highest credit rating of AAA from the Malaysian Rating Corp Bhd (MARC), which reflected the bank’s strong credit strength.

Proceeds would be utilised by IsDB for project financing and other development activities.

The bank promotes economic development in its member countries and Muslim communities in non-member countries. – Bernama