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Islamic Development Bank’s DFM homecomingMENA

Islamic Development Bank’s DFM homecoming

Nasdaq Dubai rolled out the red (or shall we say, green?) carpet for the listing of the latest Sustainability Sukuk (aka Islamic bond) by the Islamic Development Bank — valued at $2.5b. This is the IsDB’s second “eco-friendly” Sukuk issuance under its Sustainable Finance Framework.

The five-year US dollar Trust Certificates were priced at face value, and the profits will be used to fund projects that are eligible under the bank’s sustainability framework — we’re talking renewable energy, affordable housing, sustainable water, and wastewater management. Yay for big lenders caring about the future of our planet!

why it matters
Aside from big corporations increasingly joining the sustainability movement, consumers have also been pressurizing governments to drive change on a larger scale. And so, sustainable bonds are an example of how governments and lenders can deliver in this sense.