Published: February 3, 2016
ICD recently announced it has established a MTN programme to issue sukuk.
Serving the aspirations of its members
The Islamic Corporation for the Development of the Private Sector (ICD) recently announced it has established a MTN programme to issue sukuk. Farid Mohammed Masmoudi, director of ICD, tells EMEA Finance how the new sukuk issuance will tie into the organisation’s overall funding plans.
Throughout the Middle East, and beyond, interest in sukuk is growing. With more Islamic banks than ever, and a growing number of funds focusing on Shariah-compliant instruments, we are seeing a new wave of demand from private investors. Even when a fund is not wholly Shariah-compliant, many fund managers are adopting diversification strategies of which sukuk forms an integral part.
It therefore came as little surprise when the Islamic Corporation for the Development of the Private Sector (ICD) announced it had founded a medium term note (MTN) programme that will be used for sukuk issuance. Established with Hilal Services Ltd, a special purpose vehicle based in the Cayman Islands, the programme is designed to complement ICD’s resource mobilisation at a time of increasing demand.