BAKU, Azerbaijan, October 9. The Islamic Development Bank (IsDB) has successfully raised $1.25 billion through its second benchmark public Sukuk issuance of 2024, Trend reports via the IsDB.
A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that complies with Islamic religious law commonly known as Sharia.
Rated Aaa/AAA/AAA by S&P, Moody’s, and Fitch, all with a Stable Outlook, the 5-year Trust Certificates were issued under the Bank’s $25 billion Trust Certificate Issuance Programme, priced at par with a profit rate of 4.047%, payable semi-annually.
The issuance was led by a consortium of Joint Lead Managers and Joint Bookrunners, including BNP Paribas, BSF Capital, Citi, Dubai Islamic Bank, Emirates NBD Capital, HSBC, NATIXIS, Qatar International Islamic Bank, Societe Generale, and Standard Chartered Bank.
The proceeds from this Sukuk will be directed toward sustainable development projects across IsDB's member countries. Celebrating its Golden Jubilee this year, IsDB aims to drive socio-economic growth in its 57 member countries and Muslim communities worldwide. The projects will focus on critical areas such as poverty alleviation, climate action, food security, and building resilience, in line with the Bank's Realigned Strategy, which emphasizes green infrastructure and inclusive human development.
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 participation from real money accounts and official institutions, with 62% allocated to central banks and official institutions, 35% to bank treasuries, and 3% to asset managers and fund managers.
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