Islamic Development Bank approves three projects valued at $403m

The Islamic Development Bank (IsDB) has approved three projects worth around $403m that support socio-economic development and promote sustainability in member countries in key sectors such as energy, education, and transport.

The decision was taken at the 350th meeting of the Board of Executive Directors held on April 1, in Jeddah, Saudi Arabia.

IsDB president and group chairman, Dr Muhammad Al Jasser, said: “The transformative projects approved in this board meeting will have a significant impact on improving transportation, education, and energy, as well as promoting regional economic integration and addressing emergency situations.

“The IsDB Group remains committed to supporting its member countries in their pursuit of prosperity and resilience, particularly during these challenging times.”

We are pleased to announce the approval of several projects at the 350th meeting of the #IsDB‘s Board of Executive Directors, reflecting our commitment to supporting member countries in achieving their development goals.
Read more⬇️https://t.co/BkJkZV4sRs pic.twitter.com/HIf4BzN3me

— IsDB Group (@isdb_group) April 1, 2023

Islamic Development Bank: Committed to supporting development

The bank signed off on EUR318m ($344.5m) towards the financing of Phase I of the Electric Express Train Project in Egypt.

The project will provide access to safe, affordable, accessible, and sustainable transport systems for all by developing a 660km sustainable, green, and climate-resilient electric express railway system.

This project is expected to benefit 25 million people annually and decrease greenhouse gas (GHG) emissions by approximately 250,000 tonnes of CO2 annually.

The board also approved an additional financing of US$13m for the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) in Kyrgyzstan.

The bank had originally approved $50m for this project.

The project aims to meet the electricity demand in Afghanistan and Pakistan through the establishment of cross-border energy exchange among four IsDB member countries as part of the bank’s regional economic integration strategy.

#IsDB to provide an additional US$13 million for the CASA-1000 project in #Kyrgyzstan, bringing electricity to #Afghanistan & #Pakistan through cross-border energy exchange using indigenous hydropower resources. A win for regional economic integration and sustainable energy! pic.twitter.com/vmFbaVSY3L

— IsDB Group (@isdb_group) April 1, 2023

Once operational, the project will utilise efficient and environmentally friendly indigenous hydropower resources of Kyrgyzstan and Tajikistan, creating conditions for sustainable electricity trade between Central and South Asia.

The third project is a partnership between IsDB, Islamic Solidarity Fund for Development (ISFD), Global Partnership for Education (GPE), and OPEC Fund for International Development (OFID).

The project: the IsDB/ISFD/GPE/OFID Project for Support to Implementation of the National Education Development Strategy of Tajikistan (Phase II) has  IsDB’s contribution of $35m and ISFD’s contribution of $10m.

The project aims to improve the learning environment and facilitate system strengthening for the country’s sustainable implementation of an inclusive, competency-based education system.

The project is a partnership between IsDB, Islamic Solidarity Fund for Development (ISFD), Global Partnership for Education (GPE), and OPEC Fund for International Development (OFID).

Additionally, the bank board members deliberated on an emergency grant funding from the IsDB to provide support to Turkiye, and Syria in the aftermath of devastating earthquakes that struck both countries.

The IsDB Board also reviewed the progress report of the IsDB Group Food Security Response Program.

The programme supports member countries in strengthening their resilience to future food security shocks.

The bank continues to support member countries in achieving their sustainable development goals.

Read: Islamic Development Bank approves $1.12bn in development financing for nine member countries

First public sukuk

Earlier in March, the bank raised $2bn with its first public sukuk issuance of the year.

The bank, rated Aaa/AAA/AAA by S&P, Moody’s, and Fitch (all with Stable Outlook) successfully priced the 5-year Trust Certificates under its $25 billion Trust Certificate Issuance Programme.

It was priced at par with a profit rate of 4.598 per cent, payable on a semi-annual basis.

The joint lead managers and joint book-runners for this issuance were BNP Paribas, Citi, Dukhan Bank, Emirates NBD, HSBC, Islamic Corporation for the Development of the Private Sector, SMBC Nikko, Société Générale and Standard Chartered Bank.

The proceeds of the issuance will be utilised by IsDB for its general corporate purposes, which include extending project financing to its Member Countries for sustainable development including strengthening food security, climate action and building resilience.

This will be implemented under the fit-for-purpose ‘Realigned Strategy of the Bank’ with a sharper focus on green, resilient, and sustainable infrastructure as well as inclusive human development.