Cabinet approves JD400 million Islamic Sukuk for Greater Amman Municipality; expected to save up to JD140 million

Detailed summary

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Amman, October 11 (Petra) – The Cabinet on Sunday approved the issuance of Islamic financing sukuk worth JD 400 million by the Greater Amman Municipality (GAM), using an Ijara Muntahia Bittamleek (lease-to-own) structure, with an annual return of 5.5 percent over five years.

The issuance is part of a plan to improve financial management, reduce borrowing costs and capitalise on Islamic financing opportunities in the domestic market.

It is the first issuance of its kind by a municipality in the Kingdom, reinforcing Jordan's position in Islamic finance and supporting the objectives of the Economic Modernisation Vision.

The project follows months of specialised economic and financial studies conducted by GAM in cooperation with government entities and private-sector partners, particularly Islamic banks.

The municipality established a dedicated company to manage the sukuk issuance in accordance with the Islamic Finance Sukuk Law, relevant regulations and industry best practices.

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