Institution to invest $11.5bn over the next three years
International credit ratings agency Standard & Poor’s (S&P) has affirmed the AAA rating for the Jeddah-based Islamic Development Bank, pointing to the institution’s strong capitalisation and liquidity.
Along with the AAA long-term rating, S&P also affirmed the A1+ short-term rating and said both ratings have a stable outlook.
Farouk Soussa, credit analyst at S&P, said that as well as the bank’s favourable capitalisation and liquidity levels, the ratings are supported by its strong asset portfolio and the expected continued support from its government shareholders.
The bank, which is owned by 56 governments across the world, has subscribed capital of approximately $25.1bn.
At its last board meeting on 26 December, the bank endorsed plans to invest $11.5bn in new projects over the next three years.
“The approval of this programme is part of a nine-year transformation roadmap,” said Ahmad Mohamed Ali, president of the bank, in a statement issued after the meeting.
The programme will focus on human capital development, agriculture, education and infrastructure. Ali added that the bank also intends to promote the development of the sharia-compliant finance sector.
Among the most recent projects to receive funding is a $371m rail scheme in Turkmenistan. This is part of a 936 kilometre rail network linking it to Iran and Kazakhstan.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.