RIYADH: Jeddah-based Islamic Development Bank has made a return to the European market, with the issuance of sukuk worth €550 million ($588.22 million), marking its third such public offering this year.
In a statement, the IsDB announced the successful pricing of the five-year Islamic bond under its $25 billion Trust Certificate Issuance Program.
The bank revealed that the joint lead managers for this offering included Abu Dhabi Commercial Bank, Credit Agricole CIB, and Deutsche Bank.
The deal also involved participants such as HSBC, JPMorgan, Societe Generale, and Standard Chartered Bank.
With triple-A ratings from S&P, Moody’s, and Fitch, the bank has announced that the proceeds from this benchmark-size issuance will further its sustainable development initiatives in member countries. This marks a notable return to the euro public market since its inaugural green sukuk issuance, which successfully mobilized €1 billion in November 2019.
The bank explained that its realigned strategy of commitment to sustainable development focuses on three overarching, interconnected strategic objectives, which include boosting recovery on top of priorities, tackling poverty and building resilience, and driving green economic growth.
Zamir Iqbal, IsDB’s vice president for finance and chief financial officer, said that after a hiatus of 4 years, he is delighted with the outcome of their third euro public sukuk since 2018.
“We are thankful to both our anchor as well as new investors for their trust in IsDB’s mission of sustainable development and the support for this transaction,” Iqbal added.
Mohammed Sharaf, the bank’s treasurer, said that the investor response was very positive in a volatile market backdrop.
The IsDB is a multilateral development finance institution that aims to promote economic and social development in its member countries. It provides financial and technical assistance to support various development projects and initiatives, focusing on infrastructure, education, healthcare, and poverty alleviation.