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May 23 (Reuters) - Jordan's central bank said on Sunday it had auctioned its first-ever sale of Islamic bonds, or sukuk, a five-year 75 million dinars ($105.9 million) deal to help finance purchases by state utility firm National Electric Power Company.
The sukuk, which used a cost-plus-profit arrangement known as murabaha, attracted 205 million dinars worth of bids paying a 3.5 percent profit rate, the central bank said.
Sovereign sales of sukuk could help broaden Jordan's sources of funding, giving it access to a large pool of Islamic investment funds in the Gulf region as well as enabling it to tap liquidity from domestic Islamic banks.
Jordan has a small but growing Islamic finance industry. In 2011, local company Al-Rajhi Cement issued an 85 million dinar, seven-year sukuk, the first in the country. Jordan Dubai Islamic Bank began operating in January 2010. ($1 = 0.7082 Jordanian dinars)
(Reporting by Bernardo Vizcaino; Editing by Jacqueline Wong) ((Bernardo.Vizcaino@thomsonreuters.com; Telf: +61293218168; Reuters Messaging: bernardo.vizcaino.thomsonreuters.com@reuters.net))
The sukuk, which used a cost-plus-profit arrangement known as murabaha, attracted 205 million dinars worth of bids paying a 3.5 percent profit rate, the central bank said.
Sovereign sales of sukuk could help broaden Jordan's sources of funding, giving it access to a large pool of Islamic investment funds in the Gulf region as well as enabling it to tap liquidity from domestic Islamic banks.
Jordan has a small but growing Islamic finance industry. In 2011, local company Al-Rajhi Cement issued an 85 million dinar, seven-year sukuk, the first in the country. Jordan Dubai Islamic Bank began operating in January 2010. ($1 = 0.7082 Jordanian dinars)
(Reporting by Bernardo Vizcaino; Editing by Jacqueline Wong) ((Bernardo.Vizcaino@thomsonreuters.com; Telf: +61293218168; Reuters Messaging: bernardo.vizcaino.thomsonreuters.com@reuters.net))
