The Islamic Development Bank (IsDB) has hired banks to arrange a new issue of U.S. dollar-denominated sukuk, or Islamic bonds, expected to be more than $1 billion in size, said two sources familiar with the matter.

The Jeddah-based triple A-rated institution issues sukuk regularly to promote Islamic finance and attract liquidity to the sukuk market.

It has hired a group of banks including Emirates NBD, Standard Chartered, Gulf International Bank and HSBC to arrange the new transaction, expected to take place next month.

IsDB and GIB did not immediately respond to a request for comment.

HSBC, Emirates NBD and Standard Chartered declined to comment.

IsDB was last in the market in April this year with a $1.5 billion five-year sukuk deal.

It generally issues dollar-denominated bonds twice a year, and last year it also sold its first sukuk denominated in euro.

The new transaction will be more than $1 billion in size, with one of the sources saying it could go up to $1.5 billion. Its April sukuk was arranged by Credit Agricole, Emirates NBD Capital, First Abu Dhabi Bank, Gulf International Bank, HSBC, JPMorgan, Natixis and Standard Chartered.

Source: Reuters

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