Ecofin Agency

#Tunisia: Islamic development bank could withdraw from Zitouna bank’s capital

The Islamic Development Bank (IDB) has decided to sell its 21% share in Zitouna Bank’s capital. The origin of this decision is supposedly a disagreement of specifications. The withdrawal could benefit Triki Group, which could disburse 80-90 million Tunisian dinars for this acquisition. IDB entered in Zitouna Bank’s capital in 2014, with TND37.5 million. Since its inception in 2009, Zitouna Bank has become a leading Islamic financial instituion in the local market.

#Algeria: Three public banks to start offering Islamic finance services before the end of 2017

In Algeria, three public lending institutions will start offering Islamic finance services before the end of the year. They are the Banque de l’agriculture et du développement Rural (BADR), the Caisse Nationale d’Epargne et de Prévoyance (CNEP) and the Banque de Développement Local (BDL). Currently, in Algeria only Al Baraka Bank and Salam Bank are allowed to offer participative finance products to their clients. They are in fact competing in this sector with private lenders that offer both traditional and Islamic banking services. Boualem Djebbar, president of Algerian banks and financial institutions’ association, said a democratization of Islamic finance by 2018 should be expected in the country.

#Nigeria plans $328mln debut #sukuk sales this month - DMO

Nigeria's Debt Management Office (DMO) announced the sale of its initial $328 million sovereign sukuk in the local market. The proceeds will be used to finance road projects in the country. The bond will be traded on the Nigerian Stock Exchange and also on the FMDQ over the counter platform. The sale will be managed by First Bank and Islamic wealth manager, Lotus Capital, and will aim for retail and institutional investors. Africa’s second largest economy intends to borrow about $10 billion from debt markets to fund a budget deficit aggravated by lower oil prices. It also targets concessionary sources to clear its funding needs and expects to issue N20 billion ($62million) green bond after raising a $1.5 billion Eurobond in the first quarter.

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