DUBAI, June 15 Islamic Development Bank has issued initial price guidance for a five-year benchmark-sized Islamic bond, or sukuk, issue, in what would be its first debt issuance for more than a year, a document from lead managers said on Friday.
The supranational, which is rated AAA by the three main rating agencies, is looking to price the deal in the range of 35-45 basis points over midswaps, the document said.
Books have been opened and pricing is expected to happen next week, the document added.
Benchmark size traditionally means an issue worth $500 million or more.
Barwa Bank, BNP Paribas, CIMB, HSBC , NCB Capital and Standard Chartered are lead arrangers on the transaction.
The last time IDB came to the market was in May 2011, when it priced a $750 million five-year sukuk at a spread of 35 basis points over midswaps to yield 2.35 percent. [ID: nLDE74H1NW]