Khazanah eyes 'sukuk' issuance in Europe

Khazanah Nasional Bhd is considering the issue of sukuk or Islamic bonds in Eastern Europe following the opening of its office in Istanbul, Turkey, last November.

Executive director and CFO Mohd Izani Ghani said the office was established to tap investment opportunities around Turkey, North Africa and Eastern Europe.

He, however, said Khazanah planned to issue a foreign currency sukuk in the region but this cannot be realised yet as it had no assets in Eastern Europe.

"We haven’t quite covered Europe yet as an investment haven.

"So, if there any good assets for us to invest in this region, we will be happy to consider," he said during his presentation on "Sukuk: Malaysia as the Global Marketplace" at the Global Islamic Finance Forum (GIFF) 2014 here Wednesday.

Izani also said the government’s investment arm planned to raise sukuk in Turkey but the ideas was “not practical” yet.

"There is a push for us to do ‘kebab’ sukuk but the interest rate environment in Turkey is on the high side and volatile.

"We want to do (sukuk) in other currencies that can match the stable environment, currency and interest rates in the country," he added.

Previously, Khazanah issued several foreign currency sukuk through its RM10 billion multi-currency programme.