Fitch rates IDB’s $800m sukuk at AAA
Jeddah, June 26, 2012
Fitch Ratings has rated Islamic Development Bank's (IDB) issuance of $800 million Trust Certificates due June 26, 2017 issued by IDB Trust Service, under its $6.5 billion Trust Certificate Issuance Programme (TCIP) at AAA.
The TCIP benefits from a guarantee provided by the IDB; therefore, its rating is in line with IDB's Long-Term Issuer Default Rating (IDR) of 'AAA' with a Stable Outlook.
The trust certificates will take the form of Sukuk, a financing instrument compliant with Shariah law, and will be used to finance planned growth in the IDB's operations.
By assigning ratings to the programme and certificates issued under it, Fitch does not express an opinion on the programme structure's compliance with Shariah principles nor whether the relevant transaction documents are enforceable under any applicable law, including, without limitation, Saudi Arabian law.
The IDB is a multilateral development bank (MDB) and is based in Jeddah, Saudi Arabia. It was established in 1975 with the aim of fostering economic development and social progress, and provides project and trade finance as well as technical assistance to its member countries.
The bank operates in accordance with the principles of Islamic Law, and its financing instruments are mainly asset-backed. – Reuters