Kazakhstan will issue Islamic bonds in the second half of this year - Bloomberg

/IRBIS, July 29, 2010/ - Kazakhstan plans to debut Islamic Bond to broaden its investor base after giving up plans to issue Eurobonds in the last week, today reported Bloomberg. Government allocates securities that match ban Islam in the interest payments in the second half of the year and will promote changes in legislation that would allow companies to non-state holdings and Islamic banks, to accommodation of sukuk, informed to Bloomberg Mr. Aibek Bekzhanov, head of the department of Islamic instruments in the Regional Financial Centre of Almaty. "Our goal is targeting this market in the direction of domestic demand to help boost the market" - said in an interview with Bloomberg Mr. Bekzhanov July 27 in Almaty. "There are also plans to raise funds abroad through Islamic financing as a means of developing international relations with countries of Asia and the Middle East". Finance Ministry on July 20 reported that abandoned plans to place a $ 750 million of international bonds this year. The Government will implement the guidelines for its new bonds on international standards of the Council of Islamic financial services, said Mr. Bekzhanov. As well as Ministry of Finance, to issue Islamic bonds can Development Bank of Kazakhstan, said Mr. Bekzhanov. Legislative changes are needed to expand the list of potential issuers, "he said. "There is clear interest from companies to issue sukuk, but one of the main obstacles is legal restrictions," - he said. "We are working on expanding the list of companies that can produce them, and we hope that this market will be actively evolved. [2010-07-29]