World Economy

WB Plans Sukuk Issue

WB Plans Sukuk IssueWB Plans Sukuk Issue

The International Finance Corp, the World Bank’s lender to the private sector, has started work on a return to the market for Islamic bonds, or sukuk, with plans to issue sharia-compliant debt after summer in the Persian Gulf region, Reuters reported. Last year an IFC official said a deal was in the early stages of discussion, which would be the third time the World Bank’s development division issues sukuk. “We are hoping for an issuance soon after the summer,” said Alexandra Klopfer, a spokeswoman for the IFC in Washington. The IFC, which aims to spur private investment in developing countries, last sold a $100 million five-year sukuk in 2009, listing it on the Dubai and Bahrain bourses. Its first sukuk came in 2004 in Malaysia, a 500 million Malaysian ringgit ($134 million) three-year deal. In December, the International Finance Facility for Immunization Co, for which the World Bank acts as treasury manager, issued a $500 million debut sukuk.