Islamic Development Bank Raises USD 1.2 Billion Through Successful Sukuk Issuance

Strategic Insights -

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. This achievement 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 prominent international banks, and will support the Bank's continued financing of projects aimed at fostering socio-economic development across its 57 Member Countries and Muslim communities worldwide.

Key Takeaways:

  • The Islamic Development Bank successfully raised USD 1.2 billion through a 5-year benchmark Sukuk issuance under its USD 25 billion Trust Certificate Issuance Programme.
  • This marks the Bank's second USD benchmark issuance in 2025, following a record-setting 2024 with a total of USD 50 billion in Sukuk issuances since its inception 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.
  • The 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 had strong demand from Central Banks and Official Institutions, accounting for 59% of the order book, followed by Bank Treasuries and Private Banks with 35%, and Asset/Fund Managers with 6%.
  • The transaction attracted several new investors, reflecting continued confidence in the Bank's credit profile and market positioning.

Statistics:

  • USD 1.2 billion raised through the successful Sukuk issuance
  • 5-year benchmark Sukuk issuance
  • USD 25 billion Trust Certificate Issuance Programme
  • USD 50 billion in Sukuk issuances since the Bank's inception in 2003
  • 57 Member Countries and Muslim communities worldwide to benefit from the Bank's financing projects
  • 59% of the order book came from Central Banks and Official Institutions
  • 34% from the UK and Europe
  • 20% from Asia
  • 1% from Offshore US

Sources:

  • Trend News Agency (June 2025) - "Islamic Development Bank raises USD 1.2 billion through 5-year benchmark Sukuk issuance"
  • Islamic Development Bank (2025) - "IsDB completes USD 1.2 billion 5-year Sukuk issuance"