The Libya Africa Investment Portfolio (LAIP) announced yesterday that it is studying the use of Islamic/Sharia-compliant bonds, referred to as Sukuks, to finance its Libya projects.
The issue was raised during what the LAIP referred to as ‘‘an extensive roundtable discussion on financing its development projects’’ held during a meeting it had convened last Wednesday (27 August).
The meeting was attended by the LAIP Chairman, its General Manager, its department directors, alongside the Chairman of the Stock Market Authority and two of its senior directors. Also in attendance were a representative of the Islamic Development Bank, the Director of Investment at the Social Solidarity Fund, several financial experts, and delegates from other key financing institutions.
Sukuks issued via a Special Purpose Vehicle
The roundtable featured an in-depth discussion on providing the necessary support for LAIP’s projects within Libya using Sukuks as a stable and secure financing instrument. It is envisioned that the Sukuk would be issued via a Special Purpose Vehicle (SPV) established for this purpose.
At the conclusion of the discussion, it was agreed to form a working group composed of the relevant department heads of LAIP.
LAIP seeks to strengthen its domestic investments
The group will directly initiate the practical procedures required to implement this financing mechanism, in line with LAIP’s orientation to strengthen its domestic investments while maintaining its external role.
