Islamic Development Bank (IDB), a multilateral development financing institution located in Saudi Arabia, yesterday announced the launch of its first local currency Islamic bond (sukuk) worth one billion Malaysian ringgits (Dh1.13 billion) to finance projects in Malaysia.

The bank has appointed CIMB Investment Bank Berhad and Standard Chartered Bank Malaysia Berhad as joint lead arrangers while the co-lead manager is RHB Islamic Bank Berhad.

The legal counsel for the transaction is Zaid Ibrahim and Co. IDB has already received approval from the Securities Commission, the Ministry of Finance and Negara Malaysia, the central bank of Malaysia, to launch its first local currency skuk.

Moody's Investor Service, one of the leading rating agencies in the world, has reaffirmed the Islamic Development Bank's "Aaa" long-term foreign currency issuer rating/P-1 for short term.

Moody's said IDB's "ample capital base, high level of liquidity, low leverage and strong commitment from the shareholders" continue to reflect its stable outlook.

IDB President Dr Ahmed Mohamed Ali said: "It is an occasion for us to renew our pledge and endeavour to further the achievements of this noble institution through adherence to the highest levels of professionalism, due diligence and prudent practices while conducting our tasks with integrity and sincerity."

IDB has been rated by the three leading international rating agencies - Standard & Poor's, Fitch and Moody's with the highest possible rating (Triple-A).

IDB has also been recognised as eligible for "Zero Risk-Weight" by Basel Committee on Banking Supervision and the European Union.

The total finances by the bank last year totalled $5.428 billion for 327 development operations in member countries.