Baraka Banking Group, a Bahrain-based financial services organization, is reportedly planning to launch subordinated Islamic bonds through its South African and Pakistani operations.
With the issuance of sukuk, the Bahraini bank aims to strengthen its balance sheet to meet the new banking capital requirements, as reported by Reuters.
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The bank manages its operations in 15 nations across the Middle East, Asia and Africa.
Baraka Banking Group chief executive Adnan Ahmed Yousif was quoted by Reuters as saying that Al Baraka is working with the authorities in South Africa and Pakistan over launch of Islamic bonds.
The bank, which launched $200m capital-boosting sukuk in 2013, did not unveil the size of Islamic bond launch.
"We will try to do it as a subordinated, to raise capital adequacy ratios," Ahmed Yousif told the publication.
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By GlobalDataGenerally, Islamic lenders get their funding from retail deposits and short-term syndicated Islamic loans; however, subordinated deals are increasingly being used as Basel III global banking standards will be implemented globally.
