Capital Investments announced this landmark transaction during a launch ceremony which was attended by Al-Rajhi Cement - Jordan Chairman Omar Bin Sulaiman Al-Rajhi and Central Bank of Jordan Governor H.E. Faris Sharaf, alongside chairmen and representatives of the participating banks, including Cairo Amman Bank Chairman Khaled Al-Masri, Arab Bank Chief Executive Officer Nemeh Sabbagh, representing Islamic International Arab Bank, Union Bank General Manager H.E. Nadia Al Saeed, Arab Islamic Bank General Manager Atiyeh Shananier, Jordan Kuwait Bank Deputy General Manager Tawfiq Mukahal, and Bank of Jordan Deputy General Manager Mohammad Hamdan, together with Chairman of Capital Bank and Capital Investments H.E. Basem Khalil Al Salem. The event was also attended by a number of local and Arab media representatives.
Highlighting the significance of this transaction, Al Salem expressed great confidence in Jordan's resilient economy, which he said is built on solid foundations that enable it to flexibly accommodate regional economic and political fluctuations. He also lauded the progressive pro-investment policies adopted by the country, and underscored the role of the participating institutions as major market players contributing to the sustainable growth in the national economy.
H.E. Al Salem thanked both the Government and the Central Bank of Jordan for their invaluable support and dedicated efforts in opening the Jordanian capital market to new investment instruments and Islamic finance transactions in particular, creating new means of capitalizing on lucrative investment opportunities in the Kingdom.
Al-Rajhi Cement - Jordan's Chairman, Omar Bin Sulaiman Al-Rajhi, praised Jordan's Government and national institutions for their efforts in creating a positive investment environment and supporting the implementation of economically viable investments in the Kingdom. He also thanked them for their support for the issuance of the first Sukuk in Jordan, thus enabling the company to adhere to its commitment to aligning its financing activities with Islamic Shari'a law.
The Sukuk were structured based on the Ijara (leasing) principle, through which the benefit in the underlying leased assets is represented by the issued Sukuk (securities).
Al-Rajhi Cement - Jordan was established as a private shareholding company in 2006 and is wholly owned by Al-Rajhi Cement Holding Ltd, which is registered in the Dubai International Financial Centre. Al-Rajhi Cement - Jordan established and operates a cement manufacturing plant in Al-Mafraq, Jordan, which commenced distribution of its products in the local market during 2010.
In turn, Capital Investments' CEO Omar Al Wir communicated his pride in the cooperation that brought together leading financial institutions to introduce Sukuk for the first time in the local market, stating that "We hope that this alliance will pave the way for future successful Islamic finance transactions in the Kingdom."
Al Wir also commended the General Ifta' Department's efforts in facilitating the Shari'a-compliant structuring of the Sukuk and its contribution to the successful closing of this landmark transaction. He also thanked Al-Tamimi & Company Advocates and Legal Consultants for their role as legal counsel for the transaction, noting the firm's extensive experience in Islamic finance transactions in the Gulf.
In addition, Omar Al Wir stated that this issuance corresponds to the growing interest in and appetite for Islamic financing instruments in the local market, and that it reflects the readiness of the Jordanian economy to accommodate developments in the regional and international markets, and the growing Islamic finance segment in particular.
