Islamic Development Bank Hires Banks for Dollar Sukuk

TEHRAN (IQNA) – Jeddah-based Islamic Development Bank has hired banks for a potential sale of US dollar-denominated five-year Sukuk, or Islamic bonds, a document showed on Monday.

The triple-A rated financial institution has mandated Citi, Credit Agricole, Emirates NBD Capital, (Persian) Gulf International Bank, HSBC, the Islamic Corporation for the Development of the Private Sector, Natixis, Societe Generale and Standard Chartered to arrange the issuance, subject to market conditions, according to Reuters.

Sukuk is the Arabic name for financial certificates, also commonly referred to as “sharia compliant” bonds.

Sukuk is defined by the AAOIFI as securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets.