The Islamic Development Bank (IsDB, the Bank) announced an industry collaboration with International Capital Market Association (ICMA) and the London Stock Exchange Group (LSEG) on the sidelines of the COP28 in Dubai.

The three parties will work to develop a practitioners’ guide on the issuance of Sukuk (Islamic bonds) in line with the Green Bond Principles and Sustainability Bond Guidelines as published by ICMA (the Principles).

This will support the growth of green and sustainable finance within the global market for Sukuk by providing issuers and other market participants with guidance on how Sukuk may be labelled as Green or Sustainability in line with the Principles through examples, case studies and best practice.

The guidance will also help to improve investors’ awareness of Sukuk as an asset class in the global fixed income markets.

H.E Dr Muhammad Al Jasser, President of IsDB stated, “We are fully committed to industry-level engagements to promote Islamic capital markets and Sukuk (Islamic bonds) in particular.

"I am very pleased to see this initiative taking shape with our industry partners for the benefit of the wider global capital markets.”

Nicholas Pfaff, Deputy CEO of ICMA said: “ICMA welcomes the opportunity to coordinate the work to produce a practitioners’ guide for Green and Sustainability Sukuk.

"Through alignment with the Principles, we believe the guide will help ensure global consistency in the international capital markets of voluntary best practices in sustainable finance”.

Julia Hoggett, CEO, London Stock Exchange, commented: "Together with IsDB and ICMA, we are charting a path towards a more sustainable future.

"We believe that this collaboration will enhance the awareness of Sukuk as an asset class in the global fixed income markets and accelerate progress towards climate and sustainability goals worldwide.”