IDB will re­turn to ring­git Sukuk mar­ket

Pakistan Observer - - ISLAMIC BANKING & FINANCE -

SARA­JEVO—The Is­lamic De­vel­op­ment Bank (IDB) plans to sell lo­cal cur­rency Is­lamic bonds (Sukuk) in the Malaysian mar­ket this year af­ter a three-year hia­tus, the head of the Jed­dah-based mul­ti­lat­eral lender told Reuters. The deal would be the fourth ring­git-de­nom­i­nated Sukuk from the AAA-rated IDB, one of the largest is­suers of Sukuk along­side the gov­ern­ments of Malaysia, In­done­sia and Qatar.

“It could be both, pri­vate and pub­lic place­ment,” IDB pres­i­dent Ah­mad Mo­hamed Ali said on the side­lines of an in­dus­try con­fer­ence in Sara­jevo, adding that spe­cific size and tim­ing of the deal would de­pend on mar­ket con­di­tions. “We have a very ac­tive co­op­er­a­tion and re­la­tion­ship with Malaysia and some­times we need to have ring­git and we will act ac- cord­ing to the needs and is­sue Sukuk in ring­git.”

The IDB board has ap­proved the is­suance of up to 400 mil­lion ring­git ($99.9 mil­lion) in Sukuk this year, from a 1 bil­lion ring­git pro­gramme listed on Bursa Malaysia in 2008. It has raised a to­tal of 700 mil­lion ring­git via three Sukuk trans­ac­tions since then, the lat­ter a 5-year 300 mil­lion ring­git Sukuk in July of 2013. Last year, the IDB in­creased the ceil­ing of its flag­ship Lon­don-listed Sukuk pro­gramme to $25 bil­lion from $10 bil­lion, aim­ing to ex­pand its fi­nanc­ing ac­tiv­i­ties.—Reuters

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