Sudan announces Islamic bond sale

Jan 04, 2012

Sudan is selling Islamic bonds in a bid to generate funds for the government.

The bonds will be on offer until January 25th and they will be provided with an annual return of 20 percent, Reuters quotes the government's debt agency as saying.

This is higher than the return of around 15 percent offered on bonds - known as shahamas - issued in May 2011.

Sudan is currently struggling with a severe economic downturn and in the past it has faced debt problems brought about by the devaluation of its currency, as well as shortages in foreign currency.

It is hoped the new bond sale could boost funds, especially after it lost two-thirds of its oil production when South Sudan became a separate state in July last year.

The new nation recently launched an initiative to modernise financial payments to ensure its system meets the standard of services offered by other countries, the Sudan Tribune reported.ADNFCR-2976-ID-801254775-ADNFCR