IFC to list its first Islamic bond in ME – Sukuk is similar to a bond in Western finance but complies with Islamic Shariah law, which forbids charging interest.

International Finance Corp to list its first Islamic bond in Middle East for ‘positive’ impact.

 
By P. Parameswaran – WASHINGTON The International Finance Corp., a wing of the World Bank, said Wednesday it would list its first Islamic bond in the Middle East.  

The IFC Hilal Sukuk, a greenback-denominated 100 million dollar issue with a five-year maturity, will be listed with the Nasdaq Dubai and Bahrain stock exchanges, the Washington-based corporation said.

Sukuk is similar to a bond in Western finance but complies with Islamic Shariah law, which forbids charging interest.

“The Sukuk is an innovative way for IFC to create opportunities for Islamic investors who want to make a positive social impact,” said IFC chief executive Lars Thunell.

“It also supports the World Bank Group’s goals to integrate the Arab world into the global economy and offer greater opportunities for its people,” Thunell said.

The IFC is the first non-Islamic financial institution to issue a Sukuk for term funding in the six-nation Gulf Cooperation Council, which comprises Kuwait, Saudi Arabia, United Arab Emirates, Qatar, Oman and Bahrain.

It is also the first Sukuk to be listed and cleared in the Gulf Cooperation Council market only, a statement from the corporation said.

The IFC Sukuk, which has been rated Aaa by global credit rating agency Moody’s, could be listed on both the exchanges next week, a financial source said.  CONTINUED HERE.