The Islamic Development Bank successfully raised €500mn ($546mn) through its latest benchmark green sukuk issuance under the enhanced sustainable financing framework for 2025, the Saudi Press Agency reported on October 14.

The offering, the second of its kind for the bank, represents an important milestone strengthening its presence in European capital markets and establishing its position as a reliable and recurring issuer of euro-denominated sukuk in the coming period.

Proceeds from the issuance will be directed to financing and refinancing eligible projects with positive environmental impact within approved green project categories in the bank's member countries.

Dr Zamir Iqbal, vice president of the Islamic Development Bank, said work on the enhanced sustainable financing framework embodies the bank's commitment to expanding sustainable development in member countries. He said the latest European green sukuk issuance is a prominent achievement highlighting the bank's impact and capabilities in this field.

He noted that strong investor demand provides evidence of the bank's credibility and global markets' confidence in its mission and sustainable financing framework, emphasising the bank's appreciation for this support and positive interaction.

Muhammad Sharaf, treasurer of the Islamic Development Bank, said the issuance contributed to attracting a new segment of investors.

He explained that intensive investor engagement, alongside the strength of the sustainable financing framework, played a pivotal role in achieving this success. He confirmed the bank's aspiration to continue this momentum in future issuances as it returns to euro markets next year.

The Islamic Development Bank is an international financial institution established in 1975 and headquartered in Jeddah, western Saudi Arabia.

It has more than 50 Islamic countries in its membership and aims to support economic and social development in member countries according to Islamic Sharia principles through project financing, providing concessional loans, supporting infrastructure and promoting partnerships and sustainable investment.