ICMA, IsDB and LSEG Publish Guidance on Green, Social and Sustainability Sukuk

Riyadh, Kingdom of Saudi Arabia, 29 April 2024 - The International Capital Market Association (ICMA), the Islamic Development Bank (IsDB) and LSEG (London Stock Exchange Group) today publish new guidance on the issuance of green, social and sustainability sukuk (together, “sustainable sukuk”).

A copy of the guidance can be found here.

The guidance is the result of a collaboration between ICMA, IsDB and LSEG, who convened at COP28 in December 2023. It aims to provide issuers and other key market participants with practical information on how sukuk may be labelled as green, social or sustainability and aligned with the ICMA Principles through examples, case studies and best practices, thus helping the development of the sustainable sukuk market. The guidance also includes data from LSEG reflecting the current state of the sustainable sukuk market, which has now seen over US$47 billion in issuance since 2017, and with US$13.4 billion issued in 2023 – a 42% increase from the previous year.

The guidance confirms the wide applicability of the Principles across the global sukuk market and helps ensure that the market continues to develop with high standards and integrity.

Announcing the launch of the guidance, Bryan Pascoe, Chief Executive of ICMA said:

“Today’s launch marks a critical step in establishing and maintaining internationally consistent standards in the key growth segments of sustainable finance and Islamic finance. We believe the guidance is an important building block for further “scaling-up” of sustainable finance instruments, including sustainable sukuk, to help plug the massive climate funding gap, as well as raise finance for other environmental and social goals.”

H.E. Dr. Muhammad Al Jasser, President of IsDB stated, “This industry initiative is another milestone achievement that demystifies the Sukuk asset class, defines sustainable sukuk and demonstrates their alignment with the ICMA Principles. This is crucial to expand the sukuk market, attract more investors and unleash more capital towards the SDGs.”

Julia Hoggett, CEO of the London Stock Exchange, added: “This initiative, announced at COP28, was crafted through consultations with key stakeholders in the sustainable bond and sukuk markets, including leading issuers, investors, underwriters, and law firms. The guidance confirms the wide applicability of the ICMA Principles and that all project categories and themes for use-of-proceeds bonds, such as gender, blue and transition, are consistent with Shar’iah investing.”

ICMA, IsDB and LSEG intend to engage with a broader set of stakeholders on the guidance in the coming months, including Sha’riah boards, regulators, rating agencies, non-profit organisations and other market participants to ensure that the guidance is embedded across various markets.  Further updates to the guidance may be made once this is completed.


Contact details for further information.

Oliver Tinkler

+44 7931 100 499



Notes for editors

International Capital Market Association (ICMA) promotes well-functioning cross-border capital markets, which are essential to fund sustainable economic growth. It is a not-for-profit membership association with offices in Zurich, London, Paris, Brussels, and Hong Kong, serving around 620 members in 68 jurisdictions globally. Its members include private and public sector issuers, banks and securities dealers, asset and fund managers, insurance companies, law firms, capital market infrastructure providers and central banks. ICMA provides industry-driven standards and recommendations, prioritising three core fixed income market areas: primary, secondary and repo and collateral, with cross-cutting themes of sustainable finance and FinTech and digitalisation. ICMA works with regulatory and governmental authorities, helping to ensure that financial regulation supports stable and efficient capital markets.

Islamic Development Bank (IsDB) Group is the AAA-rated pioneering multilateral development bank of the Global South that has been working for nearly 50 years to improve the lives of the communities it serves by delivering impact at scale. The Bank brings together 57 Member Countries across four continents, touching the lives of nearly 1 in 5 of the world population. Its mission is to equip people to drive their own economic and social progress at scale, putting the infrastructure in place enabling them to fulfil their potential. Headquartered in Jeddah, Kingdom of Saudi Arabia, IsDB has regional hubs and centers of excellence in 11 of its Member Countries.  Over the years, the Bank has evolved from a single entity into a group comprising five entities: Islamic Development Bank (IsDB), the Islamic Development Bank Institute (IsDBI) tasked with research and training, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the Islamic Corporation for the Development of the Private Sector (ICD), and the International Islamic Trade Finance Corporation (ITFC).

London Stock Exchange Group (LSEG) is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system. LSEG are leaders in data and analytics; capital formation and trade execution; and clearing and risk management with trusted expertise and global scale, working in partnership with customers.