ENBD Capital closes IsDB’s sukuk

Business Bureau, Gulf Today

Emirates NBD Capital Limited, the investment banking arm of Emirates NBD (ENBD) has successfully closed Islamic Development Bank (IsDB)’s first ever USD sustainability sukuk.

The bank acted as Joint Lead Manager and Bookrunner for the landmark transaction by IsDB, rated Aaa/AAA/AAA by Moody’s/S&P/Fitch (each with stable outlook)

The $1.5 billion, five-year Sukuk is testament to IsDB’s long-standing commitment to prioritising the UN Sustainable Development Goals (SDGs) in accordance with the specific development needs of its 57 Member Countries (MCs). As demonstration of this commitment, IsDB became the first AAA-rated institution (as well as first Middle East based SSA) to issue a Green Sukuk in November 2019.

The proceeds of the Sustainability sukuk issuance will be allocated in line with IsDB’s Sustainable Finance Framework (under the Social Projects Category), to assist IsDB Member Countries in tackling the aftermath of the COVID-19 pandemic as part of IsDB’s $2.3 billion aid package for its member states, in response to the ongoing global pandemic.

The aid package, titled ‘Respond, Restore, Restart’ will support recipient countries as they address the impact of COVID-19 pandemic on both healthcare systems and the economic impact on SMEs.  Fahad Abdulqader Al Qassim, CEO of Emirates NBD Capital, commented: “Emirates NBD Capital has a long-standing relationship with IsDB and we are pleased to support this landmark Sustainability Sukuk that will support the recovery, growth and future development of communities across the world as they manage the impact of the ongoing COVID-19 pandemic.

The transaction also demonstrates Emirates NBD’s growing capabilities in environmental, social, and governance (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.”