Al Baraka bank announces second Sukuk issuance to raise R400m
As Islamic law prevents any instrument from paying an absolute return, the Sukuk issued by Al Baraka will pay a variable return over its 10-year life and qualifies as tier 2 capital for the bank
In another sign that Shariah-compliant investment instruments are becoming more widely adopted around the world, Al Baraka bank announced last week it would look to raise as much as R400m via its second Sukuk issuance.
This follows the successful placement of R200m, which was completed in 2018 by the local arm of the Bahrain-based Al Baraka banking group, which has assets of $25bn and operates in 18 countries around the world, primarily in the Middle East and North Africa. ..