Triple ‘A’ all the way as IDB continues its financing schemes - IFN

Triple ‘A’ all the way as IDB continues its financing schemes

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SAUDI ARABIA: The IDB’s long-term and short-term credit ratings have been reaffirmed by three leading international rating agencies. The Islamic financial institution was reaffirmed at: ‘AAA, A-1+Stable’ by S&P; ‘AAA, F-1+Stable’ by Fitch; and ‘Aaa, P-1 Stable’ by Moody’s. According to the IDB, it is currently the highest-rated institution in the Islamic finance sphere as well as among international multilateral development banks. The stable triple ‘A’ ratings are buttressed by IDB’s strong financial profile; the relevance of its policies; continual shareholder support for successive capital increases; and its prudential financial risk management policies. In pursuit of its objectives to foster the economic and social progress of its member countries and Muslim communities in non-member countries, the multilateral development bank has approved a total of US$285.4 million for the financing of new projects this year. The financing covers infrastructure developments in Saudi Arabia, Senegal, Mali, Kyrgyzstan, Uzbekistan and Togo. Funding approvals also include contributions to educational plans in Bosnia Herzegovina, Guyana, Thailand and the US, under IDB’s Waqf Fund. A specific sum is also allocated to countries such as Chad, Mali, Mozambique, Niger, Nigeria and Yemen to assist in the prevention and control of malaria. Having announced its plans to tap the Middle East Sukuk market in November last year, the IDB seeks to list a Sukuk program worth AED37 billion (US$10.07 billion) on NASDAQ Dubai. The international financial institution has mandated the International Shariah Research Academy, SABIC Chair for Islamic Financial Markets from Imam Mohammad bin Saud University, and Holland & Knight to develop a Musharakah-based Sukuk structure. Discussions thereof are expected to commence within the first quarter of the year.