Kenya issues first Islamic bond
Kenya's Capital Markets Authority has approved the first Shariah Compliant Bond. Linzi Finco Trust will float a Ksh3 billion bond to build institutional housing units, and will offer an internal return of 11.13 per cent and will be used to develop 3,069 housing units. Joining CNBC Africa for more is Wycliffe Shamiah, CEO of the Capital Markets Authority.
Fri, 22 Sep 2023 15:02:36 GMT
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AI Generated Summary
- Impact on Islamic Investors: The introduction of the Sharia Compliant Bond opens up a new avenue for investors who follow Islamic financial principles, providing them with investment options that align with their beliefs.
- Boosting Affordable Housing Market: The bond's proceeds will be used to develop over 3,000 housing units, supporting the government's focus on affordable housing and offering investors an attractive internal return rate of 11.13 per cent.
- Regulatory Framework and Compliance: The bond adheres to a robust regulatory framework, including asset-based issuance and Sharia compliance oversight, ensuring transparency and investor protection.
Kenya's Capital Markets Authority has recently approved the first Sharia Compliant Bond in the country. This landmark decision comes as part of Kenya's efforts to tap into the Islamic finance sector, which has shown significant potential but has largely remained untapped. The bond, valued at Ksh3 billion, has been issued by Linzi Finco Trust and is aimed at financing the development of 3,069 institutional housing units. Investors can expect an attractive internal return rate of 11.13 per cent on this unique investment opportunity. The CEO of the Capital Markets Authority, Wycliffe Shamiah, shed light on the details of this innovative bond in a recent interview with CNBC Africa. He emphasized the importance of catering to investors who follow Islamic financial principles and providing them with investment options that align with their beliefs.
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