IsDB sells $2.5bn in sustainability sukuk

Jeddah-based Islamic Development Bank raised $2.5 billion via a five-year sustainability sukuk, or Islamic bond, at 33 basis points over mid-swaps.

Citi, HSBC, Goldman Sachs, Natixis, Societe Generale, Standard Chartered, and Warba Bank arranged the deal.

The spread tightened from initial guidance on Tuesday of 39 bps over mid-swaps after IsDB received more than $2.65 billion in orders for the sale, according to the document issued by one of the banks on the deal. The proceeds will be used for general corporate purposes or to finance or refinance eligible projects in accordance with IsDB's sustainable finance framework, the preliminary prospectus for the sukuk showed. 

Under the framework, sustainability sukuk can finance green projects such as those focused on renewable energy and sustainable water and wastewater management, or social projects including affordable housing and access to essential services.