MANAMA: SICO, a Bahrain-based investment bank, has signed an agreement to begin offering the Bahrain Bourse’s newly established sukuk-based murabaha service, launched in collaboration with the Central Bank of Bahrain (CBB), when conducting Islamic commodity murabaha financing transactions with sukuks as collateral.
The announcement was made in a virtual signing ceremony with representatives of SICO, the CBB and the Bahrain Bourse.
“We are extremely pleased to be part of this platform and would like to commend the CBB and the Bahrain Bourse for their efforts in offering innovative solutions that support Sharia-compliant asset management services,” said SICO chief executive Najla Al Shirawi.
“We hope that with this partnership and other collaborative efforts, we can leverage such initiatives and increase our range of financial service offerings across Bahrain and the region.”
BHB chief executive Shaikh Khalifa bin Ebrahim Al Khalifa said, “The ijara sukuk-based murabaha service is a creative Sharia-compliant solution aimed at addressing the growing inter-bank needs. The unique service allows participating financial institutions to offer murabaha through an efficient process, and hence contributing to promoting Bahrain as a hub for Sharia-compliant transactions.”
The new service will complement SICO’s current murabaha facility structures, which is conducted by way of local and international commodity brokers, and is set to increase overall demand for sukuk issuances, providing support to Sharia-compliant financing services and increasing sukuk trading volumes on the Bahrain Bourse.
The platform affords customers efficient and competitive funding while ensuring premium structuring, documentation and execution of the transactions.
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