Approvals included project in Mozambique, Senegal, Benin, Cameroon, and Togo
The Board of Executive Directors (BOED) of the Islamic Development Bank at its 305th session which began on Sunday, 7/6/2015, in Maputo, capital of the Republic of Mozambique, under the chairmanship of H.E. Dr Ahmad Mohamed Ali, chairman of the Islamic Development Bank Group, approved the raising of the current limit of the Bank’s medium term sukuk issuance programme from US$10 billion to US$ 25 billion
On this occasion the BOED commended the huge success recorded by this programme in all its previous issuances since it began in 2003. This is a reflection of the high status and confidence the Bank continues to enjoy in the international financial arena. The IDB is regarded as one of the few multilateral financing institutions that have been rated for more than 12 consecutive years with “AAA” , the highest international credit rating available, by the three major international credit rating agencies – Standard & Poor’s, Fitch and Moody’s. This is in addition to the designation of the IDB as “Zero-Risk Weighted” Multilateral Development Bank by the Basel Committee on Banking Supervision in 2004 and by the European Commission in 2007.
Consequently, the IDB’s sukuk programme has maintained the “AAA” rating, which is the highest rating by the three international credit rating agencies mentioned above, together a stable outlook.
The Bank has decided to reintroduce its medium term sukuk issuance programme which is in line with the provisions and principles of the Islamic Sharia, with the aim of mobilizing and injecting new financial resources from the international money market to meet the growing development needs in member countries. The US$ 10 billion so far raised as part of the IDB’s sukuk programme have been used to finance various development programmes in member countries, particularly infrastructure projects. This is at a cost that is much lower than what it would have cost if they were financed through regular financing institutions.
The Board also approved participation in several development projects in member countries amounted to nearly US$ 450 million.
Approvals included : USD 200 million for energy project in Mozambique, USD 70 million for the Importation of agricultural equipment in favor of Kazakhstan. USD 71.5 million for tow Power projects in Senegal. USD 30 million to support the integrated micro-financing programmes in Benin, USD 28.5 million as participation in Mont Mbapite rural development project in Cameroon. USD 20.7 million as participation in road project in Togo. USD 16.3 million as participation in two projects in Bangladesh. and finally USD 12 million as contribution for the reconstruction of road project in Kyrgyz.
