Bahraini bank Al Baraka plans Shariah bond offering in South Africa

Bahrain-based Al Baraka Banking Group said it is considering issuing subordinated Shariah-compliant bonds through its South African and Pakistani units.

The South African issue is obviously more significant from a geopolitical standpoint since Pakistan is already an Islamic nation with a mature system of Shariah finance. South Africa, on the other hand, is not an Islamic nation, not by a long shot, and the country is a missionary target for Shariah finance.

South Africa’s government is also expected to launch a sovereign Shariah bond (sukuk) some time this year.

http://www.reuters.com/article/2014/05/19/al-baraka-bk-grp-sukuk-idUSL6N0O51OM20140519