Islamic bonds sale debut in SA attracts huge interest
SA is considering a rand-denominated sukuk in the next fiscal year after becoming the first African nation to issue a sovereign Shariah-compliant bond in 2014
SA’s debut sale of Islamic bonds had investors clamouring for four times the amount offered. The government is hoping for more of the same as it returns to the market to help plug a budget shortfall of more than $4bn.The country is considering a rand-denominated sukuk in the fiscal year starting April 1, after becoming the first African nation to issue a sovereign Shariah-compliant bond when it sold $500m worth of securities in 2014. The rand sukuk would also set a benchmark for local corporate issuers to tap the market, according to the Treasury."There is very strong interest, particularly from Islamic asset managers as well as Islamic banks," Tshepiso Moahloli, the chief director of liability management at the Treasury, said by e-mail. "There is a strong market-development element with this decision, which is broader than just funding."SA is increasing issuance in domestic and foreign markets to help meet R197bn worth of bond redemptions over the next three years and plug a stubbo...
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