Fitch Ratings has rated Islamic Development Bank's (IDB) issuance of USD800m Trust Certificates due 26 June 2017 issued by IDB Trust Service Limited, under its USD6.5bn Trust Certificate Issuance Program (TCIP) at 'AAA'. The TCIP benefits from a guarantee provided by the IDB; therefore, its rating is in line with IDB's Long-Term Issuer Default Rating (IDR) of 'AAA' with a Stable Outlook. The trust certificates will take the form of Sukuk, a financing instrument compliant with Sharia law, and will be used to finance planned growth in the IDB's operations. By assigning ratings to the program and certificates issued under it, Fitch does not express an opinion on the program structure's compliance with Sharia principles nor whether the relevant transaction documents are enforceable under any applicable law, including, without limitation, Saudi Arabian law. The IDB is a multilateral development bank (MDB) and is based in Jeddah, Saudi Arabia. It was established in 1975 with the aim of fostering economic development and social progress, and provides project and trade finance as well as technical assistance to its member countries. The bank operates in accordance with the principles of Islamic Law, and its financing instruments are mainly asset-backed, Reuters reported.
