Renewables dominate Islamic Development Bank's funding ops - report

The energy sector is one of the two key industries financed by the Islamic Development Bank and renewables projects account for the largest portion of the bank's funding activities with over USD 3 billion (EUR 2.59bn) in financing, chairman Muhammad Al-Jasser told Al-Arabiya.

The financial institution has issued more than USD 5 billion in green Sukuks over the last four years with the bulk of the proceeds used for green projects.

Al-Jasser expects the issue of more Sukuks in the region -- financial certificates similar to bonds that comply with Islamic law, as there is strong demand. The chairman referred to a recent USD-1.5-billion Sukuk issue by the bank that attracted an order volume of USD 4.5 billion.

The solid demand shows that there is a market for green Sukuks not only among Islamic financial institutions but also among various institutions around the world, Al-Jasser said in the interview.

The transition from fossil fuels towards green energy needs huge investments and a banking alliance recently announced USD 130 trillion in financing for the sector, Al-Jasser added.

The chairman noted that the Jeddah, Saudi Arabia-based bank is ready to cooperate with international organisations to provide financing for the transition to green energy.

(USD 1 = EUR 0.865)

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