IFC, a member of the World Bank Group, announced earlier this month that it has issued US$100 million in trust certificates through a special purpose vehicle, IFC Sukuk Company, in an effort to spur growth in developing economies.
The five-year sukuk will support IFC's developmental financing activities in the Middle East and North Africa (MENA) and in other parts of the world. It will initially be listed on NASDAQ Dubai. An application has also been made to list the sukuk on the London Stock Exchange. The transaction will be IFC's second sukuk issuance.
“We are pleased to be part of this landmark sukuk issuance by IFC, which achieved the tightest pricing for a dollar-denominated sukuk. The issuance supports the growth of the Islamic finance and sukuk industry beyond its traditional borders,” said Ahsan Ali, Managing Director and Head of Islamic Origination at Standard Chartered Bank.
“As a non-Islamic multilateral, IFC's sukuk is expected to help deepen the sukuk market in the countries of the Gulf Cooperation Council, sending a positive signal for the development of the Gulf region's markets," said Mouayed Makhlouf, IFC Director for the Middle East and North Africa.
Bahar Alsharif, IFC Deputy Treasurer, said: “This issuance will help meet the funding needs of our private-sector clients in the Middle East and globally. As a premium global issuer, IFC is keen to offer international and regional investors high-quality alternatives in Islamic financial markets.”
IFC, an AAA-rated global financial institution, carried out its first Islamic finance investment in 1995, supporting a leasing project in Pakistan. To date, IFC has approved about 28 Islamic financing transactions worth a total of US$742 million.