Islamic Development Bank (IsDB) has started marketing a five-year dollar sukuk, or Islamic bond, a document issued by one of the banks showed.
The Jeddah-based triple A-rated institution gave initial price guidance in the high 40 basis points over mid swaps area, the document showed.
IsDB has appointed Credit Agricole CIB, Emirates NBD Capital, Gulf International Bank, HSBC, JPMorgan, Natixis and Standard Chartered as joint lead managers and book runners.
Sukuk is the Arabic name for financial certificates, also commonly referred to as “sharia compliant’’ bonds.
Sukuk is defined by Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) as “securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets.
Islamic bonds is structured in such a way as to generate returns to investors without infringing Islamic law (that prohibits riba or interest).
Sukuk represents undivided shares in the ownership of tangible assets relating to particular projects or special investment activity.
(Reuters/NAN)
Support PREMIUM TIMES' journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: To advertise here . Call Willie +2347088095401...
JOIN THE CONVERSATION