Ethical Sukuk Boosted by Vaccine-Funding Debut: Islamic Finance - Bloomberg

Ethical Sukuk Boosted by Vaccine-Funding Debut: Islamic Finance - Bloomberg:



"A group that’s raised $4.5 billion for child vaccinations since its inception in 2006 plans to tap the Islamic debt market for the first time, kickstarting sales of ethical-based sukuk.



The International Financial Facility for Immunization seeks to sell as much as $500 million of dollar-denominated Shariah-compliant notes, Michael Bennett, head of derivatives and structured finance at the World Bank’s treasury department, the intermediary for the sale, said in a Sept. 3 interview in Kuala Lumpur. IFFIM, a non-profit organization based in London, will sell the three-year vaccine bonds backed by commodities as early as this month, he said.



The World Bank pioneered issuing green and socially responsible bonds in 2008 and has sold $6.4 billion of the debt on its own behalf in the conventional market, according to its website. The IFFIM’s initiative coincides with the introduction of Malaysian regulations last month to promote offerings of such securities along Shariah guidelines to boost product options in the $2 trillion global Islamic finance industry."



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