Sudan sells Islamic bonds worth $286 million

AP, Sunday 1 May 2011

Bond offering is a main source of funding for nation denied access to markets by US trade embargo

Sudan, which is due to split up in July, started on Sunday selling Islamic bonds or sukuk worth 765 million Sudanese pounds, a debt official said.

The issue will have an expected return of between 14 and 15 per cent, said an official at the state-owned Sudan Financial Services Co which sells sukuk on behalf of the central bank.

The offering would run for 10 days, he added.

Sudan sells sukuk domestically as a main source of funding as it is denied access to international markets due to the US trade embargo imposed in 1997.

Previous debt issues have been marred by an economic crisis, foreign currency shortages and a devalued currency.

The oil-producing south of Africa's biggest country voted in January to become an independent state in July.

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