04 May 2011
Jordan's Al Rajhi Cement became the first company in the country to use Islamic finance to raise capital by issuing a $120m Sukuk to finance its domestic expansion projects.
Jordan's Al Rajhi Cement became the first company in the country to use Islamic finance to raise capital by issuing a $120m Sukuk to finance its domestic expansion projects.
Last year, Al Rajhi successfully lobbied the Jordanian government to pass the necessary legislation to allow it to issue Islamic bonds.
The seven-year Ijarah was syndicated by a consortium of seven local banks led by Capital Bank and included Cairo Amman Bank, Jordan Bank, Islamic International Arab Bank, Union Bank, Jordan Kuwait Bank and the Arab Islamic Bank.
It is expected that this will not be the last Sukuk issued from Jordan this year, and there is even talk of the issuance of Sovereign Sukuk as soon as the government creates the right regulatory framework.
© The Islamic Globe 2011
