IDB to Launch $300m Sukuk

Islamic Development Bank has announced the launch of $300 million Sukuk, which will enhance the bank's base by attracting more investments for Shariah-compliant projects. Dr Mohammed Qureshi, IDB's Treasury and Finance Director, stated that the initiative was part of the IDB's strategy to raise $4 billion by introducing such instruments over ten years. He said IDB had appointed Citibank to be the lead manager for the $300 million Sukuk.

Dr Qureshi stated "IDB is coming up with the new capital increase to cope with the situation in the future. The IDB Board of Governors has taken major steps to inject more funds by increasing its capital from $7 billion to $19 billion while the subscribed capital has been increased from $5.2 billion to $10.4 billion. These increases were approved by the board at their recent annual meeting. The objective of the Sukuk is to raise money to have the operations of the bank enlarged. We can only broaden the bank's base by raising money through a whole range of Islamic products like Shariah-compatible leasing funds, istisna fund etc."