The Islamic Development Bank (IsDB), which is a multilateral development finance institution in Jeddah, Saudi Arabia, and is focused on Islamic finance, issued a $1.5bn (SAR5.63bn) sukuk, listed on Nasdaq Dubai.

The sukuk is aimed towards supporting COVID-19 relief initiatives, and brings the number of IsDB’s total sukuk value on Nasdaq Dubai to 12 with a value of $16.14bn (SAR60.59bn).

The capital raised will fund medical, social and business projects in many of the bank’s 57 member countries, IsDB announced in a statement.

The sukuk is the second to be issued under IsDB’s Sustainable Finance Framework, following its first Green Sukuk last year; it is the first ever AAA-rated Sustainability Sukuk in addition to being the first COVID-19 related sukuk in the global capital markets.

The listing brings the total sukuk value listed in Dubai to $70.79bn.

Speaking about the listing and sukuk issuance, IsDB’s president, Dr Bandar Hajjar, said: “Our debut Sustainability Sukuk issuance will play a vital role in social projects that improve healthcare facilities, equipment and critical staffing in member countries to mitigate the effects of COVID-19, as well as support small and medium-sized businesses and promote employment as countries recover from the effects of the disease. The competitive profit rate of 0.908% that we achieved reflects strong market confidence in our issuance and we look forward to further expanding our sustainable financing activities, including developing our cooperation with Nasdaq Dubai as the region’s international financial exchange.”

Commenting on the listing, chairman of Nasdaq Dubai, Abdul Wahed Al Fahim, said: “This listing underlines the wide diversity of issuers on Nasdaq Dubai, which so far this year has hosted new Sukuk issuances from a variety of sovereign, multilateral and private sector entities from around the world. We are delighted to make our high-profile listing platform and regional and international investor links available to IsDB as it expands its beneficial and widely appreciated activities globally.”

Source Construction Week