The International Finance Corp. said Wednesday it will list a $100 million, five-year Islamic bond with the Nasdaq Dubai and Bahrain stock exchanges.
The private-sector financing arm of the World Bank plans to become the first non-Islamic financial institution to issue a so-called sukuk for term funding in the Gulf Cooperation Council. The bonds comply with Islamic law, known as Shariah, by not charging interest. Instead, sukuk make payouts derived from underlying assets sold to a special purpose vehicle that is the issuer of the paper.
"The sukuk is an innovative way for IFC to create opportunities for Islamic investors who want to make a positive social impact," said Lars Thunell, the IFC chief executive and executive vice president, in a statement.
"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," he said.
The bond will be used to fund various Islamic finance projects in sectors such as health, education and infrastructure.END
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