Bahrain’s Infracorp BSC, which is a company specialised in investing in the infrastructure and sustainability development sector, has announced the issuance of a $900 million sukuk, making it the first-ever green sukuk issued by a Bahraini entity that has been listed on the London Stock Exchange.
Infracorp, the infrastructure and sustainability arm of GFH Financial Group BSC, builds on the group’s accumulated experience of supporting the sustainable development of the communities and economies where it operates.
Infracorp manages assets of nearly $3 billion of infrastructure assets including a 250 million square feet land bank that is earmarked for sustainable economic and social infrastructure.
The group is building a sustainability ecosystem in part through investments in a social infrastructure portfolio solution that comprises building materials, logistics, and technologies that support climate change goals, as well as social infrastructure assets across the education and healthcare sectors.
The latest landmark transaction reflects Infracorp’s strategy to accelerate growth of sustainable infrastructure development across the MENA and South Asia regions, while generating long-term returns for investors and adding lasting value to communities.
The chairman of Infracorp, Hisham Alrayes, said: “We are delighted to announce the issuance of Bahrain’s first green sukuk from Infracorp. This sukuk will enable positive and sustainable impact on the infrastructure development sector across the Gulf, North Africa, and South Asian regions and is a response to the market’s appetite for opportunities that generate returns also in addition to participating in leaving a significant and tangible ESG impact.”
He added: “With green sukuks growing by more than 17 percent year-on-year in 2021 to $15 billion and expected to remain a key theme of the Islamic finance market in 2022, the sukuk issuance activity is expected to stand between $160 and $170 billion in 2022, according to Moody’s. We therefore anticipate a growing investor appetite for ESG and for green sukuks throughout the ongoing economic headwinds.”
Infracorp’s sustainability road-map positions it as the region’s pioneer in sustainability investments, and in bringing social infrastructure developments to life through a portfolio that spans social infrastructure, mixed-use developments, as well as developmental solutions.
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