IslamicFinance.de

Five year 150 billion CFA issuance sukuk priced at a profit rate of 5.75%
The Ivory Coast is to become the latest state to issue a Sovereign Sukuk as it today launched its debut five year 150 billion CFA issuance sukuk priced at a profit rate of 5.75%. The addition of the Ivory Coast displays the continued growth of the Islamic finance market into Africa and represents a highlight in quiet year for sukuk issuance’s with total issuance volumes down considerably due to tightening of liquidity in traditional Islamic financial markets of the Gulf and South East Asia.
The sukuk is being arranged by the Islamic Corporation for Private Sector Development (ICD). The ICD signed an agreement in April 2015 for the implementation of a five-year Sukuk programme for 300 billion CFA to be issued in two equal phases of 150 billion CFA each. A road show was held in Saudi Arabia from 14 to 19 November and followed a recent upward revision of the Ivory Coast’s sovereign rating by Moody’s from B1 to Ba3.

The meeting discussions included the value proposition of Islamic finance; the level-playing field between Islamic and conventional finance; impediments to growth in profit-and-loss sharing financing; and the potential of the industry in fostering access to finance, notably for small- and medium-sized enterprises. But also more specific topics such as the appropriate regulatory and supervisory framework to preserve financial stability, how to adapt and implement Basel III requirements on capital and liquidity, strengthen risk management tools, and enhance Shar?`ah and corporate governance were discussed.

The IMF and Egypt continue to negotiate a potential $4.8 billion loan at an interest of 1.1%. The Salafi Nur Party made a statement claiming that this interest is not a forbidden riba. Their statement was followed by one by a another Salafi preacher with similar content.

Excerpt from the IMF report
"Which group of banks is better-positioned to withstand adverse shocks?
With larger capital and liquidity buffers, Islamic banks are better-positioned to withstand adverse market or
credit shocks. On average, Islamic banks’ capital adequacy ratio (CAR) in the GCC is higher than that for
conventional banks (except in the United Arab Emirates). The risk-sharing aspect of Shariah-compliant
contracts adds to this buffer as banks are able to pass on losses to investors."

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