Kuwait Finance House (KFH) has established an Islamic bonds programme with a total value of $3 billion, as reported by Reuters.
This new programme would mark KFH’s largest foray into the market for sukuk.
“KFH will issue the certificates via a special purpose vehicle incorporated in the Dubai International Financial Centre (DIFC), a state-owned free zone, according to the sukuk prospectus,” Reuters said.
KFH Capital Investment Company and Standard Chartered Bank will arrange this sukuk transaction, Reuters said, noting that no date or initial size for an issuance was specified.
“The programme allows for issuance in multiple currencies, including China’s renminbi, and uses a hybrid structure that combines sharia-compliant contracts known as wakala and murabaha,” according to Reuters.