IsDB Asks Banks and Financial Institutions To Issue Sukuk in Dollars

Islamic Development Bank Taps Renowned Consortium for US Dollar Sukuk Issuance

The Islamic Development Bank (IsDB), a leading multilateral development bank boasting the top credit rating (AAA) from Moody’s, Standard & Poor’s, and Fitch, has announced the selection of a prestigious consortium of financial institutions to orchestrate the issuance of a five-year Sukuk denominated in US dollars. This move underscores the IsDB’s commitment to mobilizing resources through innovative Islamic finance instruments to support sustainable development projects across its member countries.

A Collaboration of Expertise

The IsDB has assembled a highly qualified consortium comprising:

• Citibank
• Dubai Islamic Bank
• HSBC
• SNB Capital
• Natixis
• Standard Chartered
• Société Générale

These prestigious financial institutions possess extensive experience and a deep understanding of the Islamic finance landscape, ensuring the successful execution of the Sukuk issuance process. Their involvement not only strengthens the credibility of the offering but also attracts a broader range of potential investors seeking Sharia-compliant investment opportunities.

Standard Issuance Size and Potential Benefits

The IsDB’s Sukuk issuance is anticipated to adhere to the standard size, typically exceeding US$500 million. This significant offering reflects the Bank’s financial strength and dedication to mobilizing substantial capital for development projects that align with its mission.

Beyond the Sukuk Issuance

The IsDB’s issuance of a US dollar Sukuk holds broader significance for the Islamic finance industry:

• Demonstrates continued investor confidence: The issuance serves as a positive signal for the growing market confidence in Sukuk as a reliable and ethical financial instrument.
• Expands investment opportunities: This initiative provides investors seeking Sharia-compliant options with a lucrative investment opportunity in a stable and reputable institution like the IsDB.
• Highlights the evolving Islamic finance landscape: The IsDB’s action exemplifies the growing sophistication and global reach of Islamic finance instruments, contributing to the diversification of financial markets worldwide.

The Islamic Development Bank’s US dollar Sukuk issuance is a strategic move that not only fosters sustainable development but also strengthens the Islamic finance industry by fostering investor confidence and showcasing its evolving potential. This initiative paves the way for further innovation and growth within the ethical finance landscape.