Local sukuk issuance could pave the way for more
Al Baraka Bank becomes first local institution to issue shariah-compliant instrument
In a first for the country, Al Baraka Bank has successfully raised R200m from retail investors via a shariah-compliant instrument called a sukuk. The development comes at a time when global sukuk issuance is growing rapidly, and which may offer another avenue for SA's cash-strapped government to raise money. “With the successful launch of the sovereign sukuk, this creates a great opportunity to source funding from the Middle East. But more importantly, the SA government has indicated it wants to issue a domestic sukuk and I do believe this creates a fantastic opportunity to address some of the funding requirements,” says Al Baraka CEO Shabir Chohan. According to the International Islamic Financial Market Sukuk Report, global sukuk issuances increased by 33% in 2017 to $116.7bn. Durban-based Al Baraka Bank based is the local arm of the larger Bahrainian-based Al Baraka group, which has assets of about $25bn. It is also the only fully fledged Islamic bank serving the country’s estimat...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.