Qatar: Doha Bank planning to sell $1 billion Islamic bond

Click here: IINA – Doha Bank planning to sell $1 billion Islamic bond

Doha Bank plans to sell a $1 billion bond in September next year to finance investments in renewable energy, the chief executive officer said yesterday. Islamic bonds, known as sukuk, comply with Islam’s ban on lending on interest. Bondholders are instead paid returns derived from underlying assets, such as rent from real estate. “We’re looking to raise up to $1 billion through an Islamic bond in September next year for renewable energy,” Doha Bank’s chief executive R. Seetharaman said on the sidelines of the Second World Islamic Infrastructure Finance Conference here yesterday.

The bank wanted the money for projects such as setting up an exchange for trading greenhouse gas emissions permits, Seetharaman said. The market for carbon credits in the Middle East is nascent, but worldwide is growing rapidly. The global carbon credit market traded volumes of over $30 billion last year, up from less than $1 billion in 2004. The rapid expansion has caught the attention of a growing number of international investment banks, Reuters reported.

…The second annual World Islamic Infrastructure Finance Conference (WIIFC), which brings together of investors, project developers and conventional as well as Islamic financial institutions, began at the Four Seasons yesterday. The two-day event will take up key issues including sources of finance for large-scale infrastructure projects, innovation in Islamic finance, defining new parameters for Sharia compliant project financing and the role of sukuk as well as risk management and insurance.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: