Thursday 05, October 2017 by Nabilah Annuar

IDB auctions $1.25 billion five year Sukuk

Warba Bank, along with a group of regional and international banks, have announced that they have successfully acted as the joint lead managers and joint book runners for the launch of Islamic Development Bank’s (IDB) most recent Sukuk issuance.

The IDB has issued a five-year $1.25 billion Sukuk at an annual return of 2.661 per cent. In terms of the final allocation, 53 per cent of the issue size has been allocated to investors in EMEA, while 47 per cent has been allocated to Asia. In terms of type of investors, 57 per cent of issue size has been allocated to central banks and official agencies, while 43 per cent has been allocated to banks and fund managers, compared to 88 per cent and 22 per cent respectively in the previous issuance.

Warba Bank has been selected among other banks to manage Sukuk issuance.

Commenting on the mandate, Shaheen Hamad Al Ghanim, Chief Executive Officer of Warba Bank, said, "At Warba Bank, we are proud to participate in managing Sukuk issuance of the Islamic Development Bank. This is a clear indication of Warba Bank's outstanding reputation today as distinguished in offering rewarding investment’s opportunities to investors at lowest risk levels and ensuring to provide them with sustainable and consistent returns.”

This is in addition to the Bank’s successful launch of its $250 million Sukuk earlier this year, which have attracted investors from Kuwait, the Middle East, North Africa and beyond achieving major success in the underwriting. Warba Bank Sukuk have witnessed strong demand from international financial institutions, government bodies and central banks at the regional and international levels covering of the volume of the issued Sukuk by more than 136 per cent and about $1.7 billion.

He added, “Warba Bank’s success in marketing its Sukuk issued in early 2017 which were more than five times oversubscribed, has been a key factor in strengthening its ties with investors in the regional and global markets and making the bank the first option to manage Sukuk issuances. Our investors are now confident of the investment opportunities provided by Warba Bank”.

Al-Ghanim pointed out that Warba Bank has been pursuing its strategy of being the best investment bank for both corporate and retail. The Bank will not hesitate to explore investment’s opportunities in the regional and international markets that yield maximum returns to our investors.

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