CIMB-GK will issue sukuk, the Islamic finance equivalent of a bond but without interest, under the new MTN programme. The sukuk will be sold in full compliance of ijarah, a SharÆiah compliant form of leasing.
ôWe believe our knowledge and skills as a leading global Islamic capital market expert will be a significant contribution towards Singaporean corporates looking to raise Shar'iah-compliant financing and also towards the island state in its efforts to create a thriving Islamic financial sector,ö says CIMB-GK chief executive officer Carol Fong.
City Developments, Southeast AsiaÆs second largest property developer by market value, still needs to receive approval from the Singapore Exchange before it can begin to provide quotations and deal in sukuk ijarah under the Islamic MTN programme.
Based on the principles of SharÆiah, or Islamic law, Islamic finance is best known for its lack of interest payments and socially conscious investing practices, including the preclusion of investments in pork, gambling and prostitution.
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