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IsDB issues first sustainability $1.5b Sukuk - Emirates NBD Capital

IsDB issues first sustainability $1.5b Sukuk - Emirates NBD Capital
Emirates NBD's investment banking arm was the joint lead manager
Emirates NBD
EMIRATESNBD
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Dubai - Mubasher: Emirates NBD Capital has closed the first US dollar sustainability Sukuk of the Islamic Development Bank (IsDB) at a total value of $1.5 billion.

Emirates NBD's investment banking arm was the joint lead manager and bookrunner for the IsDB's transaction, according to a press release on Sunday.

The sustainability Sukuk will help IsDB's member countries to tackle the coronavirus (COVID-19) impacts, as part of its $2.3 billion aid package aiming to reduce the COVID-19 repercussions.

Rated at Aaa/AAA/AAA by Moody’s, S&P, and Fitch Ratings with stable outlook, the five-year Sukuk reflects IsDB's commitment to achieving the UN Sustainable Development Goals (SDGs).

Therefore, the bank became the first AAA-rated institution and the Middle East's first socially-oriented banking institution to issue a Green Sukuk in November 2019 to fund environmentally friendly development projects.

The Sukuk was priced at a spread of 55 basis points over five-year US dollar mid-swaps for a final coupon of 0.908% per year, which is the lowest ever coupon for an IsDB Sukuk.

Commenting on the Sukuk issuance, the CEO of Emirates NBD Capital, Fahad Abdulqader Al Qassim, said: "The transaction also demonstrates Emirates NBD’s growing capabilities in ESG related financing, an area which will only grow in importance and relevance as businesses across the globe seek to maintain their resilience during these challenging times and thrive in the future."