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Islamic Development Bank hires banks to raise more than $1 bln in sukuk

DUBAI - 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. (Reporting by Davide Barbuscia; Editing by Hugh Lawson)

Source: https://www.reuters.com/article/islamic-dev-bk-sukuk/islamic-development-bank-hires-banks-to-raise-more-than-1-bln-in-sukuk-sources-idUSL5N25P3ZA