The Islamic Corporation for the Development of the Private Sector, a Jeddah-based supranational, has printed a $500 million Sukuk maturing in February 2029.
The Sukuk issuance, which was oversubscribed with an order book over $2.2 billion, was subscribed by 4.2 times from 46 investors, demonstrating the confidence of investors in the ICD’s vision and prospects.
The proceeds from the Sukuk issuance will be invested in development assets, facilitating its mission to foster economic growth and development initiatives across its 56 member countries.
Eng. Hani Salem Sonbol, the Acting Chief Executive Officer of ICD, commented: “We are thrilled with the overwhelming response to our sukuk issuance, which reflects the trust and confidence investors have in ICD’s business strategy and financial stewardship. This successful issuance not only strengthens our balance sheet but also provides us with the resources needed to pursue our strategic objectives and drive sustainable growth. The Sukuk issuance was well-received by a diverse group of investors and is a testament to the growing belief in the financial and operational improvements of ICD and appreciation of ICD’s development impact across our 56 Member Countries.”
With its return to the fixed income market and being a multilateral development financial institution, ICD has established itself as a unique credit quality. ICD is rated ‘A2’ by Moody’s, ‘A+’ by Fitch, and ‘A-’ by S&P. Further, 82 percent of voting power is held by shareholders that are rated A+ or above.
The Joint Lead Managers / Joint Bookrunners for this transaction were Al Rayan Investment LLC, Bank ABC, Boubyan Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, KFH Capital, Mashreq, MUFG and Standard Chartered Bank.
ICD is a multilateral organization and a member of the Islamic Development Bank (IsDB) Group. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Shariah. ICD also provides advice to governments and private organizations to encourage the establishment, expansion, and modernization of private enterprises.
