Islamic Corp. Development closes oversubscribed sukuk sale: The IslamicCorporation forthe Development of the Private Sector (ICD) raised USD 500 mn in a five-year Reg S-compliant senior unsecured sukuk offering, which was 4x oversubscribed, Zawya reports.

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Tightened on strong demand: The issuance, which came under a wakala/murabaha structure, was tightened by 30 bps to be priced at 4.391% — 65 bps over US Treasuries — on strong demand after drawing more than USD 2 bn in orders. The interest rate will be paid semi-annually in arrears.

What’s next: Settlement is scheduled for Thursday, 9 October, with indicative ratings of A by S&P and A+ by Fitch. The notes will be listed on Nasdaq Dubai and Euronext Dublin. Information about how the firm intends to deploy proceeds from the debt sale was not disclosed.

About ICD: Founded in 1999, the Jeddah-based multilateral lender is the private sector arm of the Islamic Development Bank Group. Its shareholders include 56 member states, including all six GCC nations, alongside five financial institutions.

ADVISORS- Our friends at HSBC acted as joint lead managers and bookrunners, alongside Al Rayan Investment, Bank ABC, Dubai Islamic Bank, GIB Capital, KFH Capital, JP Morgan, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank.

The debt market tap comes after a busy run of lending across its member states: The firm extended a USD 15 mn five-year line of finance to Azerbaijan’s Turan Bank to boost its SME lending and private-sector funding earlier this month, it said in a press release. This came one month after it closed a USD 145 mn, three-year shariah-compliant syndicated facility for Turk Eximbank, it said in a separate statement.

Ratings tailwind: The sukuk comes on the heels of S&P upgrading ICD’s long-term issuer rating to A from A- earlier this month, citing improved asset quality and stronger business growth, according to a press release. The agency highlighted a sharp drop in nonperforming assets to 5% in 2024 from a peak of 24% in 2020.

IN OTHER DEBT NEWS-

#1- First Avenuefor Real Estate Development secured a SAR 315 mn shariah-compliant loan from Bank AlJazira, it said in a disclosure to Tadawul on Monday. The six-year financing will go toward the acquisition and development of First Avenue’s real estate projects. The loan is guaranteed by promissory notes, a mortgage on the project land, and the assignment of the project’s proceeds to the bank.

ICYMI- The real estate developer renewed and increased its shariah-compliant loan with Alinma Bank to SAR 320 mn back in June for similar purposes. It launched the SAR 710 mn Aljada Industrial Real Estate Fund a month earlier, targeting the acquisition of a 3.6 mn sqm plot in Al Dilam Governorate, south of Riyadh.

#2- Arab National Bank (ANB) will redeem its USD 750 mn resettable Tier 2 capital sukuk due in 2030 at face value later this month, it said in a Tadawul disclosure yesterday. About 3.8k fixed-rate sukuk — issued on 28 October 2020 with a 10-year maturity — will be redeemed at USD 200k apiece.

REMEMBER- ANB closed a USD 750 mn AT1 sustainable sukuk earlier this month, offered to both local and international investors under ANB’s AT1 capital sukuk program.

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