Islamic Development Bank to expand sukuk program to $10bn
The Islamic Development Bank (IDB) plans to increase its sukuk program to $10 billion from $6.5 billion, to keep pace with demand for investment-grade paper from the international institution. The Jeddah-based lender plans to make the increase official in November subject to clearance from regulators in Britain, where its multi-currency program is listed. An expanded sukuk program would help the IDB increase its profile among global investors and secure similar pricing levels to other development banks such as the World Bank and European Investment Bank, which can borrow at slightly lower rates because they are more frequent issuers. IDB sukuk are highly sought after by Islamic banks.
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