Private sector arm of Islamic Development Bank, ICD, lists $600m sukuk on Nasdaq Dubai

The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Saudi Arabia’s Islamic Development Bank (IsDB), has listed a $600m sukuk on Nasdaq Dubai.

The capital raised will support ICD’s development activities including creating competition, entrepreneurship, employment opportunities and export potential among its 55-member countries, as well as encouraging the development of Islamic financing activities such as the debt and equity capital markets, reported news agency WAM.

The five-year sukuk was issued at 140 basis points over the mid-swaps rate and was approximately three times oversubscribed, including orders from the joint lead managers.

The largest group of investors were from the Middle East (75 per cent), followed by Asia (21 per cent) and UK and Europe (4 per cent).

As for the investor type, fund managers were allocated 13 per cent, banks and private banks received 57 per cent, agencies and central banks accounted for 29 per cent and the remaining 1 per cent went to other types of investors.

“We received strong investor interest in our new sukuk issuance from a wide range of constituencies including fund managers, commercial and private banks and central banks – demonstrating their confidence and support for ICD’s strategy and initiatives in promoting private sector activity,” said Ayman Sejiny, CEO of ICD.

It is ICD’s second sukuk issuance, following a $300m issuance in 2016, which was also listed on Nasdaq Dubai.

ICD’s latest listing brings the total value of sukuk listed in Dubai to $74.05bn.

“In hosting this sukuk issuance by ICD, Nasdaq Dubai is delighted to facilitate capital raising activity in support of private sector financing and advisory projects across the Muslim world,” said Hamed Ali, chief executive of Nasdaq Dubai and deputy chief executive of Dubai Financial Market.

Read: Saudi’s Islamic Development Bank lists $1.5bn sustainability sukuk on Nasdaq Dubai

In March, it listed $2bn sukuk on Nasdaq Dubai, and then in June listed another $1.5bn sustainability-linked sukuk on the exchange. It said that the capital from the latter sukuk would be used to support Covid-19 relief initiatives including funding medical, social and business projects among its member countries.

Read: Saudi Arabia’s Islamic Development bank lists $2bn sukuk on Nasdaq Dubai