Adnan Ahmed Yousi

Al Baraka Bank plans subordinated sukuk in Jordan

Bahrain-based Al Baraka Banking Group is planning on issuing its first sukuk for its Jordanian unit later this year, chief executive Adnan Ahmed Yousif said. Jordan Islamic Bank is planning a 10-year local currency sukuk by year-end, said Yousif, without giving a size for the transaction. This would mirror deals by Al Baraka units in Pakistan and Turkey which have allowed them to boost regulatory capital as Basel III global banking standards are being phased in around the globe. In December, Jordan Islamic amended its articles of association to allow it to both issue and buy sukuk, as well as to establish special purpose vehicles for such transactions. Al Baraka is also planning a sukuk for its South African unit this year, said Yousif.

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