IsDB Raises $1 Billion in First Sukuk Issuance of 2026

The Islamic Development Bank (IsDB) raised $1 billion through its first Sukuk issuance of 2026, marking a significant milestone following a volatile market period. The issuance, which is part of a $25 billion trust certificate issuance program, received strong investor demand, with an order book exceeding $2.15 billion.

The final terms set the profit rate at 4.227 percent, with investors paying semi-annually. The transaction attracted participation from various sectors, including central banks, private banks, and asset fund managers, with 49% of the book from central bank officials and institutions.

The Sukuk issuance will finance projects across IsDB's eligible member countries, supporting the bank's strategic framework for sustainable socio-economic growth. Ahmad Ghazeleh, the bank's director, noted the strong interest from investors amidst a complex geopolitical landscape.

The joint lead managers for the issuance included prominent financial institutions such as Bank of China, BMO Capital Markets, and J.P. Morgan Securities PLC.