Kazakh bank plans debut issue of Islamic bonds
Kazakhstan, Astana, March 30 /Trend D.Mukhtarov/
The board of directors of the JSC Development Bank of Kazakhstan are to issue and place the medium term Islamic bond sukuk, Al-Murabaha, the press service of the bank said on Friday.
'The estimated bond programme is up to $500 million. It is expected that the volume of the first issue will be $200-300 million dollars with a term of not less than five years', a statement said.
At this stage the bank, together with its consultants, applied to the regulatory authorities of Kazakhstan in order to determine the order and organisation of production and placement of sukuk, Al-Murabaha.
Sukuk, Al-Murabaha is the kind of Islamic finance loan where the interest of creditors does not attract a percentage fee on the principal debt, but the difference between the purchase price of the creditors and the sale price of commodities to the borrower.
The Kazakhstan Development Bank was established in 2001. Its main activities are the development of industrial infrastructure and manufacturing industries and the encouragement of foreign and domestic investment in the economy.