Jordan, the second-lowest rated country in the Middle East at Standard & Poor’s, plans to sell as much as $750 million in its first sukuk to finance its budget deficit and infrastructure projects.
The second-smallest economy in the region may sell between $500 million and $750 million, Finance Minister Mohammad Abu Hammour said June 22. The Cabinet plans to submit a draft sukuk law to Parliament in August. Jordan’s most recent international issue, a 3.875 percent dollar non-Islamic bond sold in November, yielded 4.94 percent on June 24, according to Bloomberg.
“We’re in a hurry to pass the law and we’re very keen because there’s a lot of appetite in the market for sukuk,” Abu Hammour said. The last sale attracted “a large number” of European investors, he said. “We would also be open to investors from other regions for the sukuk, including the Gulf and Asia.”