Islamic Banking: IDB to launch $2.5b benchmark Sukuk

IDP president said the sukuk would support spending on infrastructure, education, health

LONDON: The Islamic Development Bank (IDB), the largest development organisation in the Muslim world, will launch a $2.5 billion benchmark-sized sukuk, its largest since inception, 'soon', its president Bandar Hajjar said on Monday. Speaking at a sukuk conference at the London Stock Exchange, Hajjar said the sukuk would support spending on infrastructure, education and health.



The IDB is also planning to set up a $500 million fund to support science and technology start-ups, he added. The Jeddah-based multilateral development bank is a regular issuer of international Islamic bonds, which it raises to fund its business activities, but also to promote the international sukuk market by building a liquid sukuk yield curve. The non-profit group has extended $86.1 billion in financing in the last 10 years for energy, transportation, water and sanitation projects. Bangladesh, Pakistan and Egypt are among the top beneficiaries.  

Published in The Express Tribune, March 6^th, 2018.

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