The Sukuk alternative as companies and govts fundraise
Participants at an Islamic banking seminar. Sukuk is the Islamic equivalent of bonds, and it is structured in such a way as to generate returns to investors without infringing on Islamic law (which prohibits riba or interest). FILE PHOTO | NATION MEDIA GROUP
As 2015 settles in, the search for funds among private firms, government agencies and the Treasury is expected to gain traction, with fundraisers targeting all potential avenues, including Sukuk and diaspora bonds.
Last year, Kenya’s National Treasury indicated it would issue its debut Sukuk in the next financial year, as the instrument emerges as a potential gamechanger in Africa’s financial sector.
