The Islamic Development Bank (IsDB) raised EUR 500 mn through a five-year green sukuk issuance, as part of its USD 25 bn Trust Certificate Issuance Program, it said in a press release last week. The transaction — issued under the bank’s enhanced 2025 Sustainable Finance Framework — marks IsDB’s first EUR benchmark issuance of the year and its second-ever green sukuk.

About the offering: The offering was priced at EUR mid-swaps plus 44 bps, three bps tighter than initial guidance, translating to a 2.793% annual rate. Orders exceeded EUR 2.6 bn — the largest EUR orderbook in the bank’s history, making the issuance 5x oversubscribed.

Where will the money go? Proceeds from the offering will finance and refinance green projects — including climate change adaptation, food security, and sustainable food systems — across the bank’s 57 member countries.

REMEMBER- The IsDB completed two USD-denominated issuances this year as part of the Trust Certificate Issuance Program, including a USD 1.75 bn sukuk in March offering a fixed annual return of 4.211%, followed by a USD 1.2 bn five-year sukuk in June priced at a semi-annual rate of 4.246%.

ADVISORS- Our friends at HSBC acted as joint lead managers, alongside Barclays, BNP Paribas, Commerzbank, Crédit Agricole CIB, ING, and Nomura.

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