Feb 16 (Reuters) – Bahrain-based Al Baraka Banking Group
is planning on issuing its first Islamic bonds, or
sukuk, for its Jordanian unit later this year, chief executive
Adnan Ahmed Yousif told Reuters.

Jordan Islamic Bank, the oldest of four Islamic
banks in Jordan and the largest in terms of assets, is planning
a 10-year local currency sukuk by year-end, said Yousif, without
giving a size for the transaction.

This would mirror deals by Al Baraka units in Pakistan and
Turkey which have allowed them to boost regulatory capital as
Basel III global banking standards are being phased in around
the globe.

In December, Jordan Islamic amended its articles of
association to allow it to both issue and buy sukuk, as well as
to establish special purpose vehicles for such transactions.

Authorities in Jordan have taken steps to facilitate sukuk
transactions over the past year: In July, regulators introduced
long-awaited rules allowing both the public and private sectors
to issue sharia-compliant debt.

Al Baraka is also planning a sukuk for its South African
unit this year, said Yousif.

This would come on the heels of a $500 million sovereign
deal issued in September, with South Africa’s National Treasury
now considering a retail sukuk for 2016.

(Reporting by Bernardo Vizcaino; Editing by Kim Coghill)