Islamic Development Bank Establishes its First Local Currency Sukuk Programme

A team of officials led by YBhg. Dato’ Syed Ja’afar Aznan, Vice President of Islamic Development Bank (IDB) visited Kuala Lumpur for the signing of a RM 1.0 billion Sukuk programme. The regulators namely bank Negara Malaysia (Central Bank of Malaysia), the Securities Commission and the Ministry of Finance have already given their approval for the establishment of the programme and issuance of Sukuk there under. The joint lead arrangers for the programme are CIMB Investment Bank Berhad and Standard Chartered Bank Malaysia Berhad whilst the co-lead manager is RHB Islamic Bank Berhad. The legal counsel for the transaction is Zaid Ibrahim & Co.


Following the signing of the programme documents by IDB, a 2-day road show was conducted, commencing with an investor presentation in Kuala Lumpur on 24 July 2008, which was attended by representatives of public and private institutions investors.

IDB has chosen Malaysia for the issuance of its first local currency Sukuk. The funds raised will be used to finance projects in Malaysia.

IDB is a multilateral development bank of 56 Islamic countries. It has a AAA rating from three international rating agencies, Standard & Poors, Moody’s and Fitch Ratings. The programme has been assigned a AAA rating from Standard & Poors.