First published: 08-May-2026 10:28:31

Staff Writer

The Islamic Development Bank (IsDB) has priced its $1 billion five-year dollar benchmark sukuk at par, with a secured financing overnight rate (SOFR) at Midswap 52bps over US Treasuries. IPTs were in the SOFR MS +55bps area.

The semi-annual coupon and yield are set at 4.227%.

The final orderbook closed in excess of $2.65 billion, including $50 million JLM interest.

Bank of China, BMO Capital Markets, BNP PARIBAS, ICBC, JP Morgan, KIB Invest, Nomura, and Standard Chartered Bank were the joint lead managers and bookrunners on the issuance. Standard Chartered was the billing and delivery bank.

IsDB Trust Services No.2 SARL was the issuer of the Islamic bond, with IsDB listed as the obligor.

Both the bank and the sukuk carry a rating of Aaa/AAA/AAA by Moody’s, S&P and Fitch (all stable outlook). 

The senior unsecured offering comes under IsDB’s $25 billion Trust Certificate Issuance Programme, with the sukuk to list on Euronext Dublin and Nasdaq Dubai.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com

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