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The IslamicDevelopment Bank (IsDB) has successfully raised $1.25 billionthrough its second benchmark public Sukuk issuance of 2024, reportsvia the IsDB. A sukuk is an Islamic financial certificate, similar to a bondin Western finance, that complies with Islamic religious lawcommonly known as Sharia.
Rated Aaa/AAA/AAA by S&P, Moody’s, and Fitch, all with aStable Outlook, the 5-year Trust Certificates were issued under theBank’s $25 billion Trust Certificate Issuance Programme, priced atpar with a profit rate of 4.047%, payable semi-annually. The issuance was led by a consortium of Joint Lead Managers andJoint Bookrunners, including BNP Paribas, BSF Capital, Citi, DubaiIslamic Bank, Emirates NBD Capital, HSBC, NATIXIS, QatarInternational Islamic Bank, Societe Generale, and StandardChartered Bank.
The proceeds from this Sukuk will be directed toward sustainabledevelopment projects across IsDB's member countries. Celebratingits Golden Jubilee this year, IsDB aims to drive socio-economicgrowth in its 57 member countries and Muslim communities worldwide.The projects will focus on critical areas such as povertyalleviation, climate action, food security, and buildingresilience, in line with the Bank's Realigned Strategy, whichemphasizes green infrastructure and inclusive humandevelopment.
The final allocation of the Sukuk was well diversified, with 58%allocated to the Middle East and North Africa, 26% to Asia, and 16%to Europe and the UK. The issuance attracted robust participationfrom real money accounts and official institutions, with 62%allocated to central banks and official institutions, 35% to banktreasuries, and 3% to asset managers and fund managers..
