Islamic Development Bank Issues New Sukuk To Support Global Development

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 21. The Islamic Development Bank (IsDB) has successfully raised USD 1.2 billion through a 5-year benchmark Sukuk issuance under its USD 25 billion Trust Certificate Issuance Programme, Trend reports citing the Bank.

This marks the Bank's second USD benchmark issuance in 2025, following a record-setting 2024 during which IsDB completed three public benchmark transactions across Euro and USD markets, surpassing a total of USD 50 billion in Sukuk issuances since it began operations in 2003.

The latest Sukuk issuance was managed by a syndicate of Joint Lead Managers including BBVA, BMO Capital Markets, Citi, Emirates NBD Capital, Goldman Sachs International, NATIXIS, Societe Generale, and Standard Chartered Bank.

Proceeds from the Sukuk will support the Bank's continued financing of projects aimed at fostering socio-economic development across its 57 Member Countries and Muslim communities worldwide.

The 5-year Sukuk was announced to the market on Monday, June 16, with Initial Pricing Thoughts set at SOFR Mid-Swap (MS) plus 58 basis points. Despite strong competing supply and ongoing geopolitical tensions, investor interest remained robust, with Indications of Interest exceeding USD 1.35 billion.

The issuance saw strong demand from Central Banks and Official Institutions, which accounted for 59% of the order book, followed by Bank Treasuries and Private Banks with 35%, and Asset/Fund Managers with 6%. Notably, the transaction attracted several new investors, reflecting continued confidence in the Bank's credit profile and market positioning.

Geographically, final allocations were well diversified: 45% came from the Middle East and North Africa (MENA), 34% from the UK and Europe, 20% from Asia, and 1% from Offshore US.

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