Forum creates awareness on Islamic finance industry

by Ruzaik Farook, Colpetty Correspondent

First Global Investments, an emerging player in the local Islamic Finance market held its Investors' Forum at the Trans Asia Hotel, recently.

The objective of the forum was to create awareness among investors of the immense investment potential in the Islamic Finance industry with special emphasis on Sukuk or Islamic Securitisation.

The Forum will serve as the starting point for a road show planned to raise USD 300 million through the issuance of Sukuk or Islamic Bonds.

Sukuk or Islamic fixed income securities have emerged over the years as an increasingly important and most promising asset class.

This instrument serves a number of objectives, among them, enabling organisations to raise capital in a Shariah compliant manner, expanding the investor base, offering investment opportunities to new groups and the ability to be structured in a number of increasingly complex ways.

It has become a widely accepted and most promising asset class, not only in Muslim countries, but also in non-Muslim countries which have taken to it in a big way to raise monies and investors particularly those in the Middle East.

The First Global is a multi-disciplined Islamic Financial institution which has joined Investec Capital (Pvt) Ltd., to act as lead arrangers to issue the first Sri Lankan Sukuk to the People's Leasing Company Ltd., Islamic Finance Services Unit.

Deutsche Bank AG, Colombo Branch would be appointed the trustee to manage the trust on behalf of the investors. First Global will also act as the Structuring Advisor along with Investec and as Shari'ah Advisory to the transaction. Sheikh Essam M Ishaq, Chairman, Shariah Supervisory Board, First Global, Muhammed Ikram Thowfeek, Founder and Managing Director, First Global and Sabri Abdul Cader, Vice President, First Global also spoke.