Islamic Finance

Sudanese bank launches first green sukuk for renewable energy


Published 31 May,2021 via Asharq Alawsat (English Edition) - A Sudanese bank on Monday launched an investment fund offering what it said was the country’s first green sukuk — or bonds compliant with Islamic banking principles — aimed at financing renewable energy for commercial use.

The 4.75 billion Sudanese pounds fund ($11.3 million) launched by Sanabel, a subsidiary of the Bank of Khartoum, aims to finance the production of 55 megawatt hours per day, according to its prospectus, for industries such as agriculture and mining.

More than 60% of Sudan’s population does not have access to electricity, and the country does not produce enough to cover current consumption, according to United Nations estimates. Power cuts have grown more frequent over the past year, while diesel for generators is often scarce and more expensive after recent subsidy cuts.

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tags:

Renewable energy
Green sukuk
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Asharq Alawsat