IIFM backs $700 million Qatar Islamic Sukuk
The International Islamic Financial Market (IIFM) has endorsed the State of Qatar Islamic Sukuk. Closed at $700 million, the issue is the largest sovereign global Islamic bond ever structured under Ieasing after Bahrain and Malaysia Ijarah sukuk.
The endorsement comes in line with the IIFM's aim to develop the Islamic capital market and to ensure the harmonization and standardization of Islamic financial products so as to achieve global appeal and acceptance. It is also the first global Islamic bond (sukuk) offering by Qatar, a country highly supportive of the Islamic banking industry.
The endorsement is the first by the IIFM for a non-member. The Qatar Global Sukuk will be listed at Luxembourg Stock Exchange and at Malaysia's Labuan International Financial Exchange. This is another sign of the growing cooperation among Muslim countries of the Far East and Middle East, which is also in line with the IIFM objective of enhancing cooperation among Muslim countries.
The certificate holders will be entitled to receive periodic profit distribution. Hong Kong & Shanghai Banking Corporation (HSBC) and Qatar International Islamic bank act as the lead managers and the market maker for the issue. Commerce International Merchant Bankers Bhd-Malaysia (CIMB) was appointed as the co-manager for the Far East region. The seven-year Islamic bonds will mature on 2010 and can be redeemed after five years.
Ijarah means leasing. In this type of fund, subscription amounts are used to purchase assets like real estate, motor vehicles, or other equipment for the purpose of leasing them out to their ultimate users. The ownership of these assets remains with the fund and the rentals are charged from the users. These rentals are the source of income for the fund, which is distributed pro rated to the subscribers. — (menareport.com)
© 2003 Mena Report (www.menareport.com)