Jordan’s Cabinet approved a 400 million Jordanian dinars Islamic financing issue for Greater Amman Municipality. The five-year sukuk is to carry an annual return of 5.5% and introduces a municipal issuer into the national securities market. The central bank will manage the issue, and the government projects lower financing costs. Full terms may be published in the municipality’s prospectus.
Jordan’s Cabinet approved a 400 million Jordanian dinar Islamic financing sukuk issue for Greater Amman Municipality on October 11. The government describes it as the kingdom’s first municipal sukuk. These financing certificates use a lease-to-own structure, with a five-year term and an annual return of 5.5%.[1], [2]
The approval follows months of economic and financial studies with government bodies and private-sector partners, particularly Islamic banks.[1]
The municipality established a dedicated company under Jordan’s Islamic Finance Sukuk Law to manage the issuance. The documentation is complete, and the Securities Commission has granted the required approvals. Its Board of Commissioners approved the prospectus, with endorsement from the Central Sharia Supervisory Board.[1]
The Central Bank of Jordan is to manage the issue. Target purchasers include banks, insurers, and savings, investment and pension funds. The certificates are to be tradable on the Amman Stock Exchange under the approved terms and regulatory requirements.[1]
The government projects 70 million Jordanian dinars in financing-cost savings over the first five years. It says savings could reach 140 million Jordanian dinars with a further five-year extension under the same assumptions. Greater Amman Municipality is expected to publish the prospectus with full terms in the coming days; the municipality and central bank are to announce remaining details together.[1]
