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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Group Chief Executive Ali Ahmed Al Kuwari, said: “Our strategy and vision is to become among the leading banks in the Middle East, Africa and Southeast Asia. We have expanded our region to include Southeast Asia by 2020 and to be one of the main players in the Southeast Asia region.”

The bank is interested in markets with faster growth rate by comparison to Qatar’s growth of two to four percent a year, according to Chief Financial Officer Ramzi Talat Mari.

Al Kuwari said there are no plans in the pipeline to issue US bonds in the near future. However, they have the potential to do so with an approved programme of up to US$17.5bn of international bonds, of which the bank has used up only 60% to 70%. “At the moment we don’t need it, we are very liquid,” he added.

QNB has borrowed over US$2.3bn through private placements this year, reported Zawya. At present, the bank is active in Egypt and Turkey and has penetrated into other markets including Singapore, Vietnam, Myanmar, India, Indonesia and China.

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