* Would be first of its kind in sub-Saharan Africa
* Sukuk likely to be five-year ijara issue
* Looking at both international and domestic markets
* Kenya, Nigeria, Tanzania could follow
By Xola Potelwa
JOHANNESBURG, July 4 (Reuters) – South Africa is preparing
to launch sub-Saharan Africa’s first Islamic bond, paving the
way for issues by other countries in the region, officials said
on Wednesday.
Thuto Shomang and Monale Ratsoma of the South African
Treasury’s government borrowing department told Reuters that
South Africa was leaning towards a dollar-denominated, five-year
sukuk, using an ijara structure.
“It’s the one that seems to attract investors’ interest.
That’s the one that the recommendations have been on so far,”
said Ratsoma, adding that first-time issuers usually chose
five-year tenors so that was what South Africa was considering.
The bond would be marketed to Middle Eastern countries.
There are large pools of Islamic investment money in the Gulf,
which have been buying sukuk eagerly this year as the global
financial crisis hurts many other investments.
Continued…
