"This sukuk is the sharia-compliant equivalent of Singapore government securities, and is of the highest credit standing," Heng Swee Keat, managing director of the Monetary Authority of Singapore , said at a briefing.
Islamic finance is derived from the sharia, or Islamic law. It avoids interest-based financing and advocates ethical investing and a fair distribution of profits and losses between venture partners.
The bond programme is Al-Ijarah structured, which means the bond is backed by the sale and lease-back of real estate assets. The underlying asset for this bond programme is the office units of MAS's head office.
Singapore is trying to promote the growth of Islamic finance to tap Middle East petrodollars and rising demand for ethical investing.
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