ICD to help Azerbaijan issue Islamic bonds

Business Materials 1 June 2016 21:03 (UTC +04:00)

Baku, Azerbaijan, June 1

By Azad Hasanli - Trend:

The Islamic Corporation for the Development of the Private Sector (ICD) will prepare proposals for Azerbaijan on the issuance of Islamic bonds, known as Sukuk, a source in the financial market of Azerbaijan told Trend June 1.

Sukuk are the Islamic bonds, structured in such a way as to generate returns to investors without infringing Islamic law, which prohibits interest.

The source said the ICD delegation headed by Khaled Mohammed Al-Aboodi, the ICD CEO and general manager, discussed this issue at a meeting with Azerbaijan's Finance Minister Samir Sharifov.

"Sukuk has become a central topic of discussions," said the source. "The Azerbaijani side expressed great interest for Islamic financial instruments, in particular the use of Sukuk, and asked the ICD to prepare and submit the corresponding proposals on the use of the Islamic bonds."

The source said Samir Sharifov also proposed the ICD to invest in areas of strategic importance for the government, particularly agriculture, textile production and cotton-growing.

The source also said the ICD delegation met with Azerbaijan's Minister of Economy Shahin Mustafayev.

The sides discussed the activities of the Caspian International Investment Company and stressed that the implementation of new projects is envisaged within the Company.

The ICD has been operating in Azerbaijan since 2003. It finances mainly small and medium enterprises in the country.

The Corporation is also the founder of Ansar Leasing and co-founder of the Caspian International Investment Company in Azerbaijan.