The Road to the SDGs

T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S X The FSM is being enhanced as a standalone application with more advanced functionalities and better security. ACHIEVEMENTS Rating X Four credit rating agencies have, each year, reaffirmed IsDB’s AAA rating since the development of the FSM. X Key prudential ratios, including capital adequacy and leverage, are maintained within the prescribed internal thresholds and AAA rating requirements. Monitoring and oversight X Quarterly status updates on IsDB’s financial standing are provided to the Board of Executive Directors and senior management to implement corrective measures in a timely manner. X The extent of approvals and disbursements headroom is successfully provided each year in line with the Financial Sustainability Strategy. X The liquidity and funding requirements are calculated and monitored, allowing IsDB to conduct a financially sustainable business under both normal and stressed (such as the COVID-19 crisis) market conditions. X Recommendations are provided to optimise the operations financing portfolio and manage IsDB’s commitments at acceptable levels. Strategic initiatives X The development of strategically important financial policies, such as the Liquidity Policy and Operations Overdues Policy, is supported through elaborate quantitative assessment. X A detailed quantitative assessment based on IsDB’s growth strategy has been undertaken, to determine the envelope of the 6th General Capital Increase. X The financial and capital implications of various new products and initiatives have been assessed. INVESTMENT X IsDB’s investment in an enhanced IT system infrastructure enables the necessary input to run the FSM. X Capacity building for senior management and internal stakeholders is included in the periodic updates. X US$ 17,000 have been invested to validate the model’s soundness and alignment with market standards by an external expert. I S D B R A T I N G 4 credit rating agencies have, each year, confirmed IsDB’s AAA rating since the development of the FSM F I N A N C I A L S U S T A I N A B I L I T Y The FSM provides the analytical framework to ascertain IsDB’s medium- to long-term financial sustainability [ 151 ]