ADB to push sukuk funding

The Asian Development Bank (ADB) is stepping up efforts to assist member countries to use Islamic finance in areas such as infrastructure financing, ranging from technical assistance to providing credit guarantees. The Manila-based development lender sees Islamic finance as complementing its objectives to boost financial inclusion and promote financial stability. ADB had considered making a sukuk issuance of its own, but the focus is now on supporting member states’ use of sukuk for their public debt financing. AAA-rated ADB is also considering partial guarantees to boost the credit rating of sukuk from sovereign issuers.