London Stock Exchange welcomes Islamic Development Bank Sukuk bond – largest issuance by a supranational in 2017

  • Islamic Development Bank’s 5-year dated Sukuk raises $1.25 bn, with 2.393 per cent annual yield
  • Offer receives strong international investor demand
  • Confirms London Stock Exchange’s position as leading international listing venue for Islamic finance

London Stock Exchange today welcomes the largest Sukuk bond to be issued by a supranational globally in 2017, raising $1.25bn. Listed by Saudi Arabia based, triple-A rated, Islamic Development Bank, it is a five-year bond with a 2.393 per cent yield and reinforces London’s position as a key global venue for Islamic finance. To date nearly $50 billion has been raised through 66 Sukuk issues on London Stock Exchange.  The Islamic Development Bank is a long-standing London Stock Exchange issuer.

Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group:
“The UK was the first country in the Western world to ever launch a Sukuk bond and London Stock Exchange is today delighted and honoured to list the largest ever Sukuk bond by a supranational so far this year – an issue which received strong international investor demand.

“Today’s listing demonstrates London’s standing as the world’s most international financial centre and confirms the UK as the key destination for foreign Shariah-compliant financial products and institutions.  The diverse geographical distribution shows London provides access to a truly global, deep, and liquid investor pool.”

Dr. Ahmet Tiktik, Vice President Finance & CFO, Islamic Development Bank:
“Our choice of London as the location to list our new $1.25bn Sukuk is driven by the continuous support that London Stock Exchange has for both the Islamic Development Bank and for Islamic Finance. We look forward to continuing this partnership in developing Islamic Finance.”

This listing adds to the broad range of Islamic finance products available to investors on London Stock Exchange, reflecting our commitment to being the largest western hub for Sukuk bond issuance. 

London Stock Exchange also has a vibrant market in Exchange Traded Funds (ETFs) including three Shariah-compliant ETFs based on Islamic indexes.  Our Group’s FTSE Shariah Global Equity Index Series has been designed to be used as the basis for Shariah-compliant investment products that meet the requirements of Islamic investors globally while our Russell-Ideal Ratings Islamic Index offers investors an accurate and complete global-equity market index that reflects established Shariah investment guidelines.

Over 20 banks offer Islamic financial services in the UK.

Further information about Sukuk bonds and London Stock Exchange can be found at: www.lseg.com/sukuk

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