Business

Bank Muamalat to issue
global sukuk

JAKARTA: PT Bank Muamalat, one of the country’s major sharia banks, plans to offer Islamic bonds worth between US$50 million and $100 million to global investors this year.

The bank’s president director, Arviyan Arifin, said in Jakarta on Monday that the sukuk bonds would be offered to investors in the Middle East. He said that the bank would open a branch in Jeddah, Saudi Arabia, to support the plan. “We will issue the sukuk this year as soon as we open a branch office in Jeddah,” he said.

Muamalat finance director Hendiarto said the bank was still preparing the opening of the new Jeddah branch. “We are still trying to meet the requirements,” he added.

Hendiarto said Muamalat also planned to issue subordinated sukuk worth about Rp 800 billion ($93.6 million) to Rp 1.5 trillion to strengthen the company’s financing capacity. — JP

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