The Islamic Corporation for the Development of the Private Sector (ICD), a multilateral development financial institution and the private sector arm of the Islamic Development Bank Group (IsDBG), announces successful completion of the pricing of a five-year USD 600 million Sukuk issuance at MS + 140bps.
This is the largest Sukuk issuance by ICD (Rated A2 (stable) by Moody’s; A (negative) by Fitch Ratings) since inception and double the amount from its inaugural issuance in 2016 of USD300 million, despite the institution’s absence from the capital markets over the last four years. The book was oversubscribed by almost three times including orders from the Joint Lead Managers (JLMs).
The Sukuk is subscribed by 37 international and regional investors. This is a testament of the investors regarding ICD’s credit story and new strategy which the new management has been working diligently to formulate and implement over the past two years under the leadership of its CEO, Mr. Ayman Sejiny.
ICD attracted very strong investor response despite a slightly weaker market sentiment. The orderbook exceeded USD 1.5 billion and ICD released a price guidance at MS + 160 bps area. The Sukuk was priced 20 basis points from guidance pricing.
The diversity of the orderbook saw investors from 33 countries in Europe, Asia and the Middle East. More specifically, 7% of the transaction was allocation to UK/Europe, 21% to Asia, 72% to the Middle East. By investor type, fund managers were allocated 9%, Banks/Private Banks 59%, Agencies/Central Banks 29% and Others 3%.
Mr. Sejiny said, “We are extremely proud. This is great news for all our member countries and a recognition of ICD’s two-years of hard work and dedication. It will enable us to better serve our member countries. While the current economic environment is experiencing turbulence, this achievement is a testament to our experience and expertise. We are truly blessed with this important success that we share with all of our stakeholders and investors who have entrusted their faith in us and our vision”.
Mr. Ikbal Daredia, Advisor to the CEO and Acting Director of Global Markets and Fixed Income (GMFI) and Treasury, who led the Sukuk team at ICD to achieve this historic milestone added, “We are very happy with the outcome of this Sukuk issuance and our thanks to all the investors and Joint Lead Manager who subscribed to the issue and shows the interest of investors in ICD’s development mandate. My special thanks to the ICD team for its dedication and hard work to ensure a smooth and successful transaction.”