Goldman Sachs is to push forward with plans to launch its first Islamic bonds, as Islamic finance continues its journey into the mainstream.
The US bank will meet investors in Qatar and the UAE next week, it has been announced, to discuss the launch of $500 million (£306m) of five-year bonds.
If the issuance goes ahead, Goldman Sachs will become only the second global institution to offer Islamic bonds, or sukuks, after HSBC.
Questions have been raised over the appropriateness of Goldman’s efforts, after the bank’s initial plans to delve into the Islamic bond market failed in 2011, following criticism from Islamic scholars.
Sukuks are compliant with sharia law, which rules that investors are not entitled to charge interest or transaction fees and must avoid certain unethical industries.
Mohammed Khnifer, an Islamic financial specialist, told the Financial Times that the bank must make clear the proceeds from any Islamic bonds are not used to finance its conventional lending operations.
Mohamad Akram Ladlin, executive director at the International Shari’ah Research Academy for Islamic Finance, told Reuters, “As with any issuance it is encouraged if the purpose of it is for good: to develop infrastructure, to enhance Islamic finance, for example.
“The earlier controversy was with their background, their image in the industry. There were also issues with the structure of the sukuk. If they can overcome these, why not?”
Goldman hopes that the move will raise its already high profile in the Middle East and allow the bank to play a part in a growing market.
Like our Facebook Page
Are Vegan Shoes A Sustainable Option?
How to Be More Eco-Conscious In Your Everyday Life
Tips To Become More Sustainable At Home
Modern Log Cabins: Sustainability and Aesthetics
The Basics of Starting a Eco-Friendly DIY Project
Importance of Shore Hardness for Sustainable Hobbyists
Green Healthcare Practice Patient Data Compliance Guidelines
Guidance on Trading Bitcoin as an Eco-Friendly Investor
The 5 Best Places for an Eco-Friendly Student Trip in Africa
The Importance of A Good Kitchen In an Eco-Friendly House
Why Making Your Business Sustainable Is More Important Than Ever
5 Essential Smart Building Systems for the 21st Century City
Investing in the Ethical and Eco-friendly Has Never Been Easier
The Most Popular Environment-Friendly Flooring Options
Five Ways to Make Your Bathroom More Sustainable
The Environmental Impact of Bitcoin Replacing Fiat Currencies
A Guide Transitioning to Safer and Environmentally-Friendly Chemicals
Role of HR in Sustainable Businesses
Tips To Make Air Conditioning Eco-Friendly
5 Reasons For Your Business To Go Green (Beyond Helping The Planet)
- Features9 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy10 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features9 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Invest12 months ago
The Eco-Friendly Evolution of Bitcoin Over the Years