IsDB announces collaboration with ICMA and LSEG to develop guidance for practitioners on Green Sukuk

​​​​​​Dubai – The Islamic Development Bank (IsDB, the Bank) announced an industry collaboration with the International Capital Market Association (ICMA) and the London Stock Exchange Group (LSEG) on the sidelines of COP28 in Dubai.

The three parties will work to develop a practitioner's guide to issuing Sukuk (Islamic bonds) in accordance with the Green Bond Principles and Sustainability Bond Guidelines as published by the ICMA (the Principles). This will support the growth of green and sustainable finance in the global Sukuk market by providing guidance to issuers and other market participants on how to label Sukuk as “green” or “sustainable” in line with the principles, through examples, case studies and best practices can.

The guidelines will also help raise investor awareness of Sukuk as an asset class in global fixed income markets.

HE Dr. Muhammad Al Jasser, President of the IsDB stated: “We are fully committed to industry-level engagements to promote Islamic capital markets and in particular Sukuk (Islamic bonds). I am delighted to see this initiative taking shape with our industry partners for the benefit of the broader global capital markets.”

Nicholas Pfaff, deputy CEO of ICMA said: “ICMA welcomes the opportunity to coordinate the work on producing a practitioner’s guide for Green and Sustainability Sukuk. We believe that by aligning with the Principles, the Guide will help ensure global consistency of voluntary best practices in sustainable finance in international capital markets.”

Julia Hoggett, CEO, London Stock Exchangecommented: “Together with IsDB and ICMA, we are planning the path to a more sustainable future. We believe this collaboration will increase awareness of Sukuk as an asset class in global fixed income markets and accelerate progress towards climate and sustainability goals worldwide.”

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About IsDB

IsDB is a AAA-rated supranational and multilateral development financial institution with 57 member countries and a mission to ensure sustainable socio-economic development in member countries and Muslim communities worldwide.

About ICMA

ICMA promotes well-functioning cross-border capital markets, which are essential to financing sustainable economic growth. It is a non-profit membership association with offices in Zurich, London, Paris, Brussels and Hong Kong, serving around 620 member companies in 66 jurisdictions. Its members include private and public issuers, banks, broker-dealers, asset managers, pension funds, insurance companies, market infrastructure providers, central banks and law firms. It provides industry-focused standards and recommendations and prioritizes four core areas of the fixed income market: primary, secondary, repo and collateral, and sustainable finance. ICMA works with regulators and government agencies to help ensure financial regulation supports stable and efficient capital markets.

About LSEG

‏LSEG (London Stock Exchange Group) is a leading global financial market infrastructure and data provider and plays an important social and economic role in the global financial system. With our open approach, trusted expertise and global reach, we enable the sustainable growth and stability of our customers and their communities. We are committed partners with extensive experience, in-depth knowledge and a global presence in data and analytics. indices; capital formation; and trade execution, clearing and risk management across multiple asset classes. LSEG is headquartered in the UK and has significant operations in 70 countries across EMEA, North America, Latin America and Asia Pacific. We employ 23,000 people worldwide, more than half of them in the Asia-Pacific region. LSEG's ticker symbol is LSEG.

contacts:
‏Tarek Fleihan
‏Global communication
‏London Stock Exchange Group
‏[email protected]