Islamic Finance: SA’s sukuk triumph

When national treasury made its debut on the global sukuk market in September, SA became a member of an elite group.

It became the third non-Islamic country to issue a sovereign sukuk, joining the UK and Hong Kong, which also made their debuts this year.

Sukuk, the Islamic equivalent of a bond, complies with sharia law, which prohibits payment or receipt of interest. Instead, sukuk investors are paid non-interest income from physical assets such as property and infrastructure.

A resounding success, SA’s US$500m, 5.75-year sukuk attracted bids of $2.2bn. Though small by global issuance standards, the sukuk has “huge significance”, says Oasis Group CE Adam Ebrahim. “It has put SA on the global sukuk map.”

Read the full Financial Mail feature.