Subscribe

RSS Feed (xml)

Powered By

Skin Design:
Free Blogger Skins

Powered by Blogger

Tuesday, December 1, 2009

World Bank unit to list sukuk in Dubai, Bahrain

By AFP

SUKUK LISTING: International Finance Corp will list its first Islamic bond in Dubai and Bahrain. (Getty Images)

The International Finance Corp, a wing of the World Bank, said on Wednesday it would list its first Islamic bond in the Middle East.


The IFC Hilal Sukuk, a dollar-denominated $100 million issue with a five-year maturity, will be listed with the Nasdaq Dubai and Bahrain stock exchanges, the Washington-based corporation said.

Sukuk is similar to a bond in Western finance but complies with Islamic Shariah law, which forbids charging interest.
"The Sukuk is an innovative way for IFC to create opportunities for Islamic investors who want to make a positive social impact," said IFC chief executive Lars Thunell.

"It also supports the World Bank Groups goals to integrate the Arab world into the global economy and offer greater opportunities for its people," Thunell said.

The IFC is the first non-Islamic financial institution to issue a Sukuk for term funding in the six-nation Gulf Cooperation Council, which comprises Kuwait, Saudi Arabia, UAE, Qatar, Oman and Bahrain.

It is also the first Sukuk to be listed and cleared in the Gulf Cooperation Council market only, a statement from the corporation said.

The IFC Sukuk, which has been rated Aaa by global credit rating agency Moodys, could be listed on both the exchanges next week, a financial source told AFP.

The bond issue will help develop the regions nascent Sukuk market and encourage other sovereign and corporate issuers to engage with member countries of the Gulf Cooperation Council, the IFC said.

The IFC Sukuk is aimed at supporting a pipeline of Islamic finance projects in key sectors such as health, education and infrastructure.

A separate body will issue the IFC Sukuk and "warehouse" the underlying assets, the IFC said, adding that the syndicate includes HSBC Amanah, Dubai Islamic Bank, Kuwait Finance House Bahrain, and Liquidity Management House.

"We are grateful to the Shariah scholars, our partners at the Dubai and Bahrain exchanges, and the syndicate for guiding us through this complex process, and hope that the model will facilitate the process for other issuers to enter the Sukuk market," IFC Treasurer Nina Shapiro said.

The Sukuk global asset class has a market value of over 200 billion dollars.

IFC issued its first Islamic bond in 2004. That bond, denominated in the Malaysian Ringgit currency, was a 132 million dollars equivalent three-year "bullet" bond.

The IFC formed an Islamic finance working group last year to develop a more strategic approach to Islamic finance activities.

The working group and expansion of IFC field offices in the Middle East and North Africa region have contributed to a committed portfolio of over $190 million in loans and equity in the region, the IFC said.

The global Islamic finance industry has grown rapidly to an almost one trillion dollar industry, reports have said.

But it makes up less than one per cent of world capital, giving it a huge scope for growth.

Source : Arabian Business

1 comment:

Osman raheem said...

My name is Ahmad Asnul Brunei, I contacted Mr Osman Loan Firm for a business loan amount of $250,000, Then i was told about the step of approving my requested loan amount, after taking the risk again because i was so much desperate of setting up a business to my greatest surprise, the loan amount was credited to my bank account within 24 banking hours without any stress of getting my loan. I was surprise because i was first fall a victim of scam! If you are interested of securing any loan amount & you are located in any country, I'll advise you can contact Mr Osman Loan Firm via email osmanloanserves@gmail.com

LOAN APPLICATION INFORMATION FORM
First name......
Middle name.....
2) Gender:.........
3) Loan Amount Needed:.........
4) Loan Duration:.........
5) Country:.........
6) Home Address:.........
7) Mobile Number:.........
8) Email address..........
9) Monthly Income:.....................
10) Occupation:...........................
11)Which site did you here about us.....................
Thanks and Best Regards.
Derek Email osmanloanserves@gmail.com