Islamic Development Bank

Islamic Development Bank tightens pricing on $1 bln sukuk; to price on Thurs

Islamic Development Bank (IDB) has tightened pricing on a $1 billion five-year sukuk which could price later on Thursday. The lender tightened its pricing on the senior unsecured sukuk to 8 basis points over midswaps. It had opened books on Tuesday after setting initial price thoughts at around 10 bps over midswaps. Investors have committed to orders worth around $1.7 billion for the issue; the book is expected to close at 0900 GMT. IDB has picked CIMB, Dubai Islamic Bank, GIB Capital, HSBC, Natixis, NCB Capital, National Bank of Abu Dhabi, RHB Islamic Bank and Standard Chartered to arrange roadshows in the Middle East and Asia, which would wind up on Thursday.

Islamic Development Bank sets IPT for benchmark dollar sukuk -leads

Jeddah-based Islamic Development Bank (IDB) has opened books after setting initial price thoughts for a potential dollar-denominated sukuk, which could price as early as Thursday, a document from lead arrangers showed. IDB has set initial price thoughts for the senior unsecured five-year sukuk issue at around 10 basis points over midswaps, the document showed. The AAA-rated IDB on Feb. 24 said it had picked CIMB, Dubai Islamic Bank, GIB Capital, HSBC, Natixis, NCB Capital, National Bank of Abu Dhabi, RHB Islamic Bank and Standard Chartered to arrange roadshows in the Middle East and Asia. The roadshows will continue until Thursday, the document showed.

Islamic Development Bank picks arrangers for dollar sukuk offering

Jeddah-based Islamic Development Bank (IDB) is set to meet fixed income investors starting Sunday ahead of a potential dollar-denominated sukuk transaction. The AAA-rated IDB has picked nine banks to arrange investor meetings in the Middle East and Asia, a benchmark offering will follow, subject to market conditions. CIMB, Dubai Islamic Bank, GIB Capital, HSBC, Natixis, NCB Capital, National Bank of Abu Dhabi, RHB Islamic Bank and Standard Chartered have been chosen to arrange the sukuk sale. IDB, which last issued $1.5 billion in five-year Islamic bonds in September, is looking to increase its issuance of sukuk, partly to raise its profile among international investors and to secure similar pricing levels to other development banks.

IDB unit extends Islamic reinsurance for Apache's Egypt projects

A unit of the Jeddah-based Islamic Development Bank has provided $80 million worth of sharia-compliant reinsurance to cover political risk for oil and gas projects in Egypt. The deal covers the Overseas Private Investment Corporation for its own insurance policy on the exploration projects of Houston-based Apache Corporation, the Islamic Corporation for the Insurance of Investment & Export Credit (ICIEC) said in a statement. The announcement comes as Egypt is seeking new sources of energy to cope with its worst energy crisis in decades, caused by declining gas production and rising consumption. The policy would allow the country to retain foreign direct investment during a critical transtional period.

North Africa: UK Partners With Islamic Development Bank On Arab Women's Business Initiative

The UK and the Islamic Development Bank (IDB) have signed a new Memorandum of Understanding to help boost business opportunities and create jobs for thousands of women across the Middle East and North Africa. The Arab Women's Enterprise Fund will see the IDB and the Department for International Development working together to improve the competitiveness of women entrepreneurs in the Arab world. It will also address legal and cultural barriers that block women getting ahead in business. DFID will contribute £10 million to provide grants to help poor women access markets. IDB will match this with a further £10 million in Sharia-compliant Islamic finance.

Islamic finance issues to be probed at forum

Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI) and the Islamic Development Bank (IDB) are planning a joint meeting in Bahrain next month aimed at discussing issues of internationalisation of Islamic financial services. The roundtable meeting of the directors of operations and investment of Islamic banks, themed 'Internationalisation Strategies of Islamic Financial Institutions', will be held on February 23 and 24. Through the meeting, the council expects to increase awareness and information sharing about the CIBAFI Strategic Plan 2015-2018.

IDB to provide $1 billion financing to Cote d'Ivoire

The Islamic Development Bank (IDB) has confirmed that it would provide financing worth $1 billion on the basis of an agreement to carry out various development projects in Cote d'Ivoire during the next two years. Cote d'Ivoire President Alassane Ouattara said that his country is looking forward to greater cooperation and partnership with IDB in various fields including capability building for sukuk in order to mobilize resources for development. The president also sought IDB loans to finance the country's infrastructure projects. The meeting saw the signing of a loan agreement worth $15 million to establish a vocational training center in the country.

Islamic Development Bank presents Kyrgyzstan 5 mobile clinics

The Islamic Development Bank has presented Kyrgyzstan 5 mobile clinics, the Department of Information Policy of the President reported. Last Wednesday, President Almazbek Atambayev and IDB President Akkhmad Mohamed Ali Al Madani discussed the implementation of new projects in Kyrgyzstan. The IDB Director said that he will send a special mission to explore new joint strategic projects in the near future. Moreover, an agreement on donating Kyrgyzstan five mobile clinics designed to improve access to health services in remote areas of the country was signed during the meeting. Equipment cost is estimated at $10 million.

Islamic Development Bank to raise up to $1.2 billion- Chief Executive Khaled Al-Aboodi

The private sector arm of the Jeddah-based Islamic Development Bank plans to tap Islamic capital markets to raise as much as $1.2 billion in long-term funds during its current financial year, its chief executive Khaled Al-Aboodi said. The Islamic Corporation for the Development of the Private Sector (ICD) will also explore a capital increase as it expands its economic development activities, with a proposal to be presented to shareholders in June 2015. Fitch Ratings has assigned an AA credit rating to the ICD, which has a low level of leverage but which is expected to grow as the institution increases its lending activities. The ICD will consider both syndicated Islamic loans as well as issuance of sukuk, or Islamic bonds, Al-Aboodi added.

Islamic Development Bank to be established in CIS with Baku to become the regional Islamic financial center

Baku will become the regional Islamic financial center and has a potential to press internationally recognized centers. According to Behnam Gurbanzadeh, IBA (International Bank of Azerbaijan OJSC) Islamic Financing Department Manager, the idea to establish the CIS Islamic Development Bank proposed several years ago has become very attractive for the countries of the Commonwealth. In addition to Azerbaijan, Russia and Kazakhstan are very interested in establishing such a bank, Gurbanzadeh said. Today there are up to 700 million users of Islamic financial services in the world.

IDB Provides US$ 50 Million Youth Employment Support to Yemen

Last week, the Chairman of the IDB Group, Dr. Ahmad Mohamed Ali, signed a US$ 50 million agreement with Dr. Mohammed Saeed Al-Sa’adi, Yemeni Minister of Planning and International Cooperation and IDB Governor for Yemen. The agreement aims to provide economic empowerment to the needy Yemeni youth and families by contributing to capacity building and providing them with production inputs for job creation in various fields such as construction of rural roads, coffee cultivation etc. The financing arrangement is expected to pay great attention to employment of less-privileged females as well as the youth who will be employed in these projects. The agreement comes within the framework of the US$ 250 million Youth Employment Support (YES) Program launched by the IDB in 2011.



The chairman of Istanbul's Stock Exchange, ?brahim Turhan, has said that public offerings of debt instruments is increasing. He made the comments in response to questions from press members after the 11th Synergy Meeting held in Bursa by the Balkan and Rumelia Industry and Business Association (BALKANS?AD). He also announced for the first time that the Islamic Development Bank, of which the Turkish Treasury is also a shareholder, will be quoting non-interest bearing notes (sukuk) of $10 billion at Istanbul's Stock Exchange Market. He added that soon a major insurance company will be offered to the public, followed by an important bank due for a capital increase.

UN, World Bank and Islamic Development Bank commit 8 billion dollars in Major New Development Initiative for the Horn of Africa

Leaders of global and regional institutions pledge political support and major new financial assistance for countries in the region, totaling more than $8 billion over the coming years. UN Secretary-General Ban Ki-moon, the World Bank Group (WBG) President, Jim Yong Kim, as well as the President of the Islamic Development Bank Group and high level representatives of the African Union Commission, the European Union, the African Development Bank, and Intergovernmental Agency for Development (IGAD) are combining forces to promote stability and development in the Horn of Africa. The initiative covers the eight countries in the Horn of Africa -- Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, Sudan, and Uganda.

The Islamic Development Bank approved an operation plan for the new fiscal year

The Board of the Islamic Development Bank approved an operation plan for the new fiscal year 2014-2015 at its 300th meeting held on 19 -22 October in Jeddah. According to the Bank, the plan has a budget of US$ 5.1 billion not including the administrative budget for the Bank and its Funds and Programs. The Bank also approved US$ 814.2 million for development financing. Amongst the approvals of the Board was US$ 230.2 million for Development of Sharm El –Sheikh International Airport Project (Phase-II) – Egypt. IDB has already contributed US$ 226.8 million to the project and with the new approval IDB contribution to the project reaches US$ 457 million.

Guyana possibly joining Islamic Development Bank

Guyana is currently exploring the option of fostering closer cooperation with the Islamic Development Bank, including giving active consideration to the possibility of joining that Bank. Minister of Finance, Dr. Ashni Singh recently met with the leadership of the Bank. Guyana is already a member of the Organisation of Islamic Cooperation and is home to a large and vibrant Muslim population.

Clifford Chance advises on Islamic project financing

The transaction documents for the financing of the power project were signed over three days of meetings and included a ceremony in Rabat attended by Abdelilah Benkirane, prime minister of Morocco. Part of the financing was provided via a structured Islamic tranche from the Islamic Development Bank and it was not possible to use the more traditional procurement/forward lease structure typically seen in Islamic project financings. The Islamic tranche represents the first multi tranche cross border Islamic financing into Morocco and the first international Islamic project financing structured in this manner. Clifford Chance was delighted and proud to help create a new and innovative structure in Islamic project financing.

Islamic Development Bank set to raise $1.5b sukuk

Jeddah-based Islamic Development Bank set the size of its five-year sukuk issue at $1.5 billion while tightening the pricing to the low end of its previous guidance. Final pricing was given at a spread of 10 basis points over mid-swaps; previous guidance was in the range of 10 to 12 bps, and initial price thoughts were 15 bps. The order books were approaching $2 billion. Books closed at 1000 GMT on Thursday. The AAA-rated IDB had mandated CIMB, Deutsche Bank, First Gulf Bank, GIB Capital, HSBC, Maybank, Natixis, National Bank of Abu Dhabi, and Standard Chartered Bank as joint bookrunners to arrange the sukuk sale. The IDB is looking to increase its issuance of sukuk, partly to raise its profile among international investors and to secure similar pricing levels to other development banks.

Islamic Development Bank eyes Thursday for sukuk pricing, guidance given

The Islamic Development Bank is aiming to price a U.S. dollar-denominated sukuk of benchmark size and five years duration on Thursday, after releasing initial price guidance for the issue. The Jeddah-based institution is targeting pricing in the area of 15 basis points over midswaps. The IDB was due to wrap up a series of investor meetings on Wednesday after announcing last week it had chosen banks to arrange roadshows ahead of a potential deal. The AAA-rated IDB chose CIMB, Deutsche Bank, First Gulf Bank, GIB Capital, HSBC, Maybank, Natixis, National Bank of Abu Dhabi, and Standard Chartered as arrangers.

Egypt expects $425 mln from Islamic Development Bank

Egypt said on Sunday it expected to receive around $425 million in funding from the Islamic Development Bank to develop an oil refinery in Assiut and an airport in the Red Sea resort of Sharm el-Sheikh. The first agreement is for $198 million earmarked for the refinery. A further $226.8 million (not $8.23 million) will go towards the first phase of the Sharm el-Sheikh airport project. Egypt has requested a further $223.2 million for the second phase of the project. The Islamic Development Bank made financing contributions worth about $1.85 billion in Egypt between July 2013 and August 2014. The country will also seek external sources of funding for other development projects.

Standard & Poor's Reaffirms Highest Rating (AAA) for the Islamic Development Bank

Standard & Poor's (S&P), one of the world's leading rating agencies, has reaffirmed the Islamic Development Bank 's ( IDB ) 'AAA' rating with a stable outlook. The first AAA rating report on IDB was issued in 2002. S&P recognized IDB as having an extremely strong financial profile underpinned by robust capitalization and high liquidity levels; as well as a very strong business profile emanating from the Bank's important policy role in promoting social and economic development across member countries and Muslim communities in non-member countries. The report emphasized the strong relationship, extraordinary support and preferred creditor treatment which IDB enjoys from its member countries.

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