IsDB starts marketing dollar sukuk

Saudi Arabia’s Islamic Development Bank (IsDB) has began marketing five-year dollar sukuk, or Islamic bonds, at high-40s basis points over mid-swaps.

The bank has hired Citi, Dubai Islamic Bank, HSBC, Islamic Corporation for the Development of the Private Sector, LBBW, Natixis and Standard Chartered Bank to arrange the potential debt sale, which is expected to close on Wednesday. The issuance, which is expected to be of benchmark size, is under Islamic Development Bank’s $25 billion trust certificate issuance programme. Benchmark size generally means upwards of $500 million.