Sudanese bank launches first green sukuk for renewable energy

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Khartoum

In the latest flashpoint of an inflection in global energy industry, a Sudanese bank had rolled out an investment fund proffering the country’s first green sukuk or Islamic sharia-based bonds earlier this week, mostly aimed at financing the nation’s renewable energies for commercial use.

In point of fact, latest move from Bank of Khartoum to launch Sudan’s first ‘Islamic banking principle’-based bonds came forth as many fossil-fuel giants appeared to be leaning towards green energy amid fierce pressure from G20 majors likes of EU leaders alongside the United States.

On top of that, according to Bank of Khartoum which had launched a $11.3 million (4.75 billion Sudanese Pound) fund, named as Sanabel, the investment fund would offer sukuks to finance a production line of 55 megawatts of electricity per day through renewable energy sources, as the Sudanese bank had claimed to have targeted core industries likes of agriculture and mining.

Sudanese bank launches the country’s first green energy Sukuk, If truth is to be unveiled, Sudan, the north-east African country, lacked investments to produce enough to cover up its present consumption level, while over 60 per cent of entire Sudanese population did not have an access to electricity as of December 2020, a United Nation estimate had unveiled.

Adding further strains into the beleaguered east-African economy, power grid failures turned more frequent over recent years and fossil-fuel powered generators became too costly to afford following recent subsidy cuts.

Amid such crippling shortage in energies, latest move from Bank of Khartoum to launch an Islamic-sharia based bond in partnership with Nahda Company to finance renewable energy sources, could provide the African nation’s economy with a much-required lifeline, suggested analysts.—Agencies