IsDB announced in a press release that the United States-based agency has confirmed its short-term issuer rating at Prime-1, the highest classification on offer. The statement also stated that Moody’s has rated IsDB AAA since 2006.

AAA-rated obligations are subject to the lowest level of credit risk and are considered to be of the highest quality, according to the agency. Prime-1 indicates the greatest ability to repay short-term debts.

IsDB, a multilateral development finance institution headquartered in Jeddah, was established in 1973 with a primary concentration on Islamic Finance for infrastructure development.

IsDB further stated that the affirmation is indicative of Moody’s belief that the capital position and asset performance of IsDB will continue to be robust. The bank’s preeminent position as one of the few regular issuers of highly-rated benchmark-size sukuk in the international capital markets, low funding costs, and strong liquidity and funding position all contribute to this expectation.

The financial institution also noted that its robust credit profile is a result of the track record of support from member countries, which has been demonstrated through a series of general capital increases.

In addition, IsDB stated that its leverage ratio is anticipated to remain substantially below the median for AAA-rated multilateral development banks, as a result of the capital increases.

Currently, the financial institution has 57 members, with Saudi Arabia being the largest single shareholder, accounting for 22.5% of the total capital. In the following order, Libya and Indonesia possess a capital share of 9.03% and 7.04%, respectively.

IsDB has been a provider of long-term, sustainable, and ethical financing structures to its member nations to facilitate economic growth and development since its inception.

“IsDB is staunchly dedicated to assisting its member countries in the pursuit of sustainable development and economic growth by means of these strategic initiatives,” the venture stated, adding that these investments not only satisfy immediate requirements but also establish the groundwork for long-term prosperity and resilience.

IsDB allocated USD 165 million in June 2024 for the construction and operationalisation of green, resilient, and sustainable schools in earthquake-prone and earthquake-affected regions of Turkey.

In the same month, it also allocated USD 156.3 million to Turkmenistan for the establishment of three oncology centres and the training of healthcare providers.

Additionally, IsDB allocated USD 47.68 million to Suriname in June to improve the country’s electricity transmission and distribution network.

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