Friday, 30 March 2012

NAB Eyes Islamic Bond Issuance Down Under - Deal Journal Australia - WSJ

Growing appetite for Islamic finance is spurring both large and small Australian financials to boost their offering of Sharia-compliant fixed-income assets, the head of the country’s first Islamic wealth manager said on Thursday.

National Australia Bank Ltd., or NAB,  is considering selling up to US$500 million in Islamic bonds in what would be the first issuance of Sharia-compliant debt securities in Australia, two people familiar with the deal told Dow Jones Newswires.

The bonds would be structured to comply with Muslim law by paying a profit from the bond, rather than interest, which is banned in Islam. A spokeswoman for NAB declined to comment.

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