CAPITAL MARKETS - IDB lists Islamic bonds on Bursa Malaysia

THE Islamic Development Bank (IDB) yesterday listed US$3.5 billion ($4.6 billion) of Islamic bonds on the Malaysian stock exchange, with US$500 million accorded the emas status by the bourse, CIMB Islamic, an adviser to the listing exercise, said.

In a statement, CIMB Islamic said the move made IDB the first multilateral development bank to list its foreign currency sukuk programme on Bursa Malaysia.


CIMB Islamic is CIMB Group's global Islamic banking and finance franchise. The sukuk programme is a multi-currency programme established by the IDB via IDB Trust Services Limited, a special purpose vehicle. The bonds are rated Aaa/AAA/AAA by Moodys, S&P And Fitch.

Proceeds from the issuance, which is also listed on the London Stock Exchange, are earmarked for general corporate purposes, including financing projectsin IDB member countries, CIMB Islamic said.

The five-year US$500 million tranche that was accorded emas status was issued last October. The status, CIMB Islamic said, "symbolises universal value and security" and is "conferred to foreign-currency denominated issuances with a focus to provide greater visibility to the Malaysian market in raising funds by local and foreign corporations".

This is the second time that IDB has listed its sukuk programe on the Malaysian bourse.

Last August, the development bank had listed a RM1- billion sukuk Medium Term Note (MTN) Programme on Bursa Malaysia, making it the first multilateral development bank to list its ringgit-denominated sukuk MTN Programme on the exchange, the statement said.

The earlier Ringgit sukuk MTN Programme was issued via IDBs special purpose vehicle, Tadamun Services Berhad and it was IDBs inaugural sukuk issued in local currency.

With this listing, Bursa Malaysia's sukuk listings now amount to total of US$27.6 billion .

In his welcome remarks during the listing ceremony, Datuk Dr Syed Muhamad Syed Abdul Kadir, chairman of CIMB Islamic, expressed his appreciation to IDB for its confidence in Malaysia and for appointing CIMB Group to lead manage the sukuk issuance, the statement said. The Brunei Times

Source : http://www.bt.com.bn/business-asia/2010/12/02/idb-lists-islamic-bonds - Dec 2, 2010