IIFM endorses Bahrain Monetary Agency International Sukuk Company USD250 Million Ijarah Sukuk

The endorsement comes in line with the IIFM's aim to develop the Islamic capital market and to ensure the harmonisation and standardisation of Islamic financial products so as to achieve global appeal and acceptance.

The Kingdom of Bahrain has been a pioneer in the development of Islamic financial market. Besides being the host country for the International Islamic Financial Market the premier institution mandated with the development of a viable Islamic secondary market, Bahrain was the first sovereign to issue Ijarah Sukuk in the world for the domestic market. Bahrain is also the only sovereign having a Sukuk issuance schedule. Bahrain Sukuk is also the largest in term of outstanding amount exceeding US$1 billion.

Bahrain Sukuk al-Ijarah program was gradually planned starting with local issuances followed by a regional issuance and culminating to this present international issue.

The present US$250 million debut global issue crowned the Bahrain Sukuk experience and emphasizes its role as the hub for the Islamic banking industry in Middle East. Citi Islamic Investment Bank E.C has been mandated to act as the arranger and structuring adviser for the Sukuk. Citi group Global Market is acting as the sole bookrunner and lead manager. The issue is the first Sukuk issue from Bahrain to have a dual listing in both Bahrain Stock Exchange (BSE) and the Luxembourg Stock Exchange (LX). The issue has been assigned a preliminary rating of A- by Standard and Poor (S&P) in line with the sovereign rating.

"The present global Sukuk issuance from Bahrain is a welcome addition to the fast growing global Sukuk market after US$600 million Malaysia Global Sukuk, US$400 million Islamic Development Bank Trust Certificates and 700 Qatar million Global Sukuk all endorsed by IIFM" Said Mr. Abdul Rais Abdul Majid , Chief executive Officer-IIFM.

It is worth noting that besides pioneering Sukuk al-ijarah, Bahrain is also the first country to issue Sukuk al-Salam. The initiative started on 13th June 2001, and regularly, on a monthly basis as short-term government bills program.