IFC Debuts $100 Million Islamic Bond on Dubai and Bahrain Stock Exchanges: First Non-Islamic Financial Institution to Issue Sukuk for Term Funding.

In Dubai: 
Salah-Eddine Kandri  
Phone: (971) 4-360-1009 
E-mail: SKandri@ifc.org 

In Washington, D.C.: 
Alexandra Klopfer 
Phone: (202) 473-4645 
E-mail: aklopfer@ifc.org 




Dubai, October 21, 2009—IFC, a member of the World Bank Group, today announced 
that it will list its first Sukuk (Islamic finance investment certificates) 
with the Nasdaq Dubai and Bahrain stock exchanges.  

The IFC Hilal Sukuk will be a dollar-denominated $100 million non-amortizing 
issue with a five-year maturity. It will help develop the region’s nascent 
Sukuk market and encourage other sovereign and corporate issuers to engage with 
member countries of the Gulf Cooperation Council. 

“The Sukuk is an innovative way for IFC to create opportunities for Islamic 
investors who want to make a positive social impact,” said Lars Thunell, IFC 
Executive Vice President and CEO. “It also supports the World Bank Group’s 
goals to integrate the Arab world into the global economy and offer greater 
opportunities for its people.” 


Islamic finance adheres to Islamic law, known as Shariah. Its most basic 
features include a requirement that investor and borrower share in the risk of 
a venture, and a prohibition on charging interest. Shariah also prohibits 
investment in certain activities, for example, gambling or selling alcohol. 

Sukuks are investment certificates with undivided ownership share in underlying 
Sharia-compliant assets. The IFC Sukuk will support a pipeline of Islamic 
finance projects in key sectors such as health, education and infrastructure. A 
separate special purpose vehicle will issue the IFC Sukuk and warehouse the 
underlying assets. The syndicate includes HSBC Amanah, Dubai Islamic Bank, 
Kuwait Finance House Bahrain, and Liquidity Management House.     

“We are grateful to the Shariah scholars, our partners at the Dubai and Bahrain 
exchanges, and the syndicate for guiding us through this complex process, and 
hope that the model will facilitate the process for other issuers to enter the 
Sukuk market,” said Nina Shapiro, IFC Vice President for Finance and Treasurer.  

The Sukuk global asset class has a market value of over $200 billion. IFC is 
the first non-Islamic financial institution to issue a Sukuk for term funding 
in the Gulf Cooperation Council. This is also the first Sukuk to be listed and 
cleared in the Gulf Cooperation Council market only. The IFC Sukuk has been 
rated Aaa by Moody’s. 

IFC issued its first Islamic bond in 2004. That bond, denominated in the 
Malaysian Ringgit currency, was a $132 million equivalent three-year bullet 
bond. In early 2008, IFC formed an Islamic Finance Working Group that aims 
develop a more strategic approach to Islamic finance activities. The efforts of 
the working group and the expansion of IFC field offices in the Middle East and 
North Africa region have contributed to a committed portfolio of over $190 
million in loans and equity in the region.   

About IFC  
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping channel capital into developing countries during the financial 
crisis. For more information, visit www.ifc.org.