Jordanians show high interest in Islamic bonds — CBJ

AMMAN — The Central Bank of Jordan (CBJ) on Sunday announced the second issuance of Islamic bonds (sukuk) on behalf of the National Electric Power Company (NEPCO) at a total value of JD75 million, 4.1 per cent returns and a five-year maturity period. 

The new issue adopts the murabaha principle (an Islamic finance and investment instrument), the Jordan News Agency, Petra, reported.

The CBJ is the manager, payment agent and custodian of the issue, Petra reported. 

The bank reported that demand on the sukuk was 2.73 times the value of the issue, having received orders for JD205 million-worth bonds.

The CBJ said the high turnout underlines the increasing demand on the financing tools compatible with the Islamic Law (Sharia), which have been lacking in the local market during past decades. 

The bank said the success of this issuance was a result of the continuous coordination and efforts of the Finance Ministry, the CBJ, NEPCO (the issuing party) the Jordan Securities Commission and the Central Sharia Oversight Commission. 

The issuances have illustrated the practice of laws regulating sukuk in real life, the CBJ said and created a guideline of the prices the sukuk on the local market, while they have encouraged the private sector to enter this realm of investment.