News Column

ICD launches upsized sukuk, smaller bond

May 14, 2014



Investment Corporation of Dubai (ICD) has increased the amount of cash it will raise from the sukuk portion of its debut bond issue but cut the amount to come from a conventional bond tranche, a document from lead arrangers said.



The state-owned fund, which holds stakes in some of the emirate's top companies, will now raise $700 million from an Islamic bond with a six year lifespan, up from the $500 million it had previously said it would raise.







However, the amount of cash to come from a conventional bond of ten years duration has been cut to $300 million, the document said. The size of the issue had been earmarked for $500 million.







Pricing on the sukuk will come at 160 basis points (bps) over midswaps, the document said, the mid-point of the revised 155-165bps price range given earlier on Wednesday.







Meanwhile, the 10-year bond will price at the top of the 200-210bps over midswaps revised range.




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Source: Khaleej Times (United Arab Emirates)


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