Structuring and Issuance of Sukuk

Sukuk’s significance in the Islamic investment management industry is immense since it fills the gap of the fixed income asset class. Sukuk are investment certificates that represent ownership claims in pools of investment assets or services.

Widely known as Islamic bonds, Sukuk employ the principles of Islamic Finance in order to provide Shari’ah-compliant tradable securities, the financial characteristics of which are very similar to those of conventional bonds.

FCB Capital is taking a hands-on approach to develop and promote the Sukuk market in Kenya to complement the role of bank financing. This includes working closely with related Kenyan government authorities in creating the legislative and regulatory framework for Sukuk offerings.

With growing regional economies, the demand for funds is on the increase as the number of projects to be funded in the region in the next 10 years, either by governments or the private sector, continue to rise while at the same time requiring billions of US Dollars to execute. Hence, Sukuk as a development-oriented product is expected to become a key source of financing for these projects.

Through the development and provision of Sukuk as an alternative source of financing, we aim to fulfil various objectives including increasing the diversity and depth of the capital market.

We assist companies that are expanding their businesses or making new investments to gain access to the capital market through Sukuk funding. Our priorities are to companies that are making investments which will bring positive effects to the country’s economy.

Also, through Sukuk, we create avenues for long-term capital to execute a wide range of much-needed projects such as infrastructure projects as well large-scale (affordable) housing projects to meet pressing housing shortages.