BAKU, Azerbaijan, June 18. The Islamic Development Bank (IsDB) Group has issued more than $50 billion in sukuk, of which $5 billion is "green sukuk", and the bank maintains the AAA rating, IsDB Group Chairman Muhammad Sulaiman Al Jasser said, Trend's correspondent reports from the event.
He made the remark during the Fireside Chat with the Chairman of IsDB Group, organized within the framework of the 51st Annual Meeting of the IsDB Group.
The official spoke about Islamic finance instruments, especially the role of sukuk, and the bank's financial performance.
Al Jasser noted that Islamic finance offers new financial instruments that can be adapted to various projects:
"Sukuk is an important innovation based on Islamic traditions and, since it's backed by assets, prevents excessive borrowing. This allows for only a controlled amount of issuance and contributes to financial stability. The sukuk mechanism also creates opportunities for reinvestment in new projects by raising funds through the sale or pledge of assets of completed projects," he explained.
According to Al Jasser, this instrument, in addition to facilitating project financing, can also be used as an investment and savings tool.
The IsDB chairman added that the bank has so far issued more
than $50 billion in sukuk, of which $5 billion is green sukuk.
According to him, the demand in this direction is also quite
high.
Al-Jasir also emphasized that the IDB has a high credit rating,
which has reached the AAA level, thanks to various factors,
including the financial instruments it uses. He said that this is
the only AAA rating obtained in the Islamic financial system.
"The support of shareholders and borrowers played a significant role in achieving this rating, and the most important issue is to maintain this high rating," the bank chairman added.
