The Road to the SDGs

X The launch of IsDB’s debut Green Sukuk reaffirmed its well-established commitment to play a catalytic role in the global Islamic capital market with innovative solutions that help MCs to achieve the SDGs. X Targeted investment is designed to ensure that specific SDGs are attained through IsDB interventions in MCs. X IsDB’s Sustainable Finance Framework is aligned with the International Capital Market Association’s GBP, Social Bond Principles and Sustainability Bond Guidelines. This has allowed IsDB to: – Issue Green, Social and Sustainability Sukuk – Achieve its first ESG Risk Rating from Sustainalytics, with a strong low risk score of 11.5% out of 100% – Secure a favourable second party opinion for IsDB’s Sustainable Finance Framework from CICERO, achieving a medium green shading, which is in line with other sovereign supranational agencies, including IFC, KfW and MuniFin. ACHIEVEMENTS X The IsDB Green Sukuk is the first AAA-rated Green Sukuk in the world. X IsDB achieved the lowest ever profit rate for its Sukuk. X A European central bank purchased the Green Sukuk. X The initiative is in line with the aims of IsDB’s P5P and new business model by ensuring growth for IsDB under its funding objectives. X The market profile of IsDB as a green issuer has received a considerable boost, enabling it to reach previously untapped categories of investors. INVESTMENT X The € 1 billion mobilised by Green Sukuk will be exclusively directed to projects tackling various SDG sectors in MCs. The returns are long- term and intangible, as the issuance: – Raises IsDB’s profile as a ‘financier of development’ with a focus on the SDGs – Shows how Islamic financing instruments can play an important role towards SDG financing. X The initiative has helped IsDB to secure new investors from the environment, social and governance (ESG) and socially responsible investments universe, especially from Europe and Japan. G L O B A L I S S U A N C E O F S U S T A I N A B L E B O N D S Around US$1 trillion in 2019, with green bonds accounting for 77% of this market I S D B G R E E N S U K U K IsDB issued its first Green Sukuk in November 2019, raising €1billion [ 153 ] 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