Dentons advises the Islamic Development Bank (IsDB) on its first green sukuk issuance

January 2020

Dentons has advised the Islamic Development Bank (IsDB) on its first green sukuk issuance of EUR1 billion, issued under IsDB’s USD25 billion Trust Certificate Issuance Programme. IsDB is the first AAA-rated institution in the world to have issued a green sukuk. The transaction also represents the first EUR-denominated green sukuk globally. In preparation for the issuance, IsDB put together a sustainable finance framework, with CICERO Shades of Green providing the second party opinion and Sustainalytics providing the ESG rating.

Dentons has regularly advised IsDB on the issuance of debt securities in the international capital markets under IsDB’s sukuk programme. The transaction was successfully completed on December 4, 2019 and marked IsDB’s third public issuance in 2019.

The issuance was listed on Euronext Dublin, NASDAQ Dubai and Bursa Malaysia, and was offered to sophisticated investors outside of the United States in reliance on Regulation S under the US Securities Act 1933.

Citi, First Abu Dhabi Bank, HSBC, LBBW, NATIXIS, Société Générale, Standard Chartered Bank and Warba Bank acted as joint lead managers on the issuance, while SMBC Nikko Capital Markets Limited acted as co-manager.

Dentons Debt Capital Markets partner Alex Roussos, based in Dentons’ Dubai office, commented, “We are delighted to have supported the IsDB on yet another ground breaking transaction. Green and sustainable finance is becoming an area of growing importance in the Middle East and demand for such paper is currently driven by both issuers and investors, all of whom want to make a positive impact on the environment and the societies we live in. Recent issuances have demonstrated that the additional work required to put together a green or sustainable finance framework and procure a second party opinion is not a significant obstacle for issuers.”

The Dentons team was led by partner Alex Roussos, with assistance from associate Sana Siddiqui and trainee Sogand Shaker.