Solar Guys could help shed light into Australian Sukuk market (By IFN)

Monday 15^th October 2012

AUSTRALIA: Local solar power firm Solar Guys has announced plans to issue a Sukuk to finance the development of a solar energy plant in Indonesia; in a funding plan that could help lead the way in a country where Islamic bond issuances have yet to see the light of day. The plan is led by Mitabu Australia, which develops financing options to fund energy infrastructure projects using solar power technology; and will manage the funding of the Indonesian project. The Sukuk is expected to see investments from Malaysia and the Middle East. The Indonesian solar energy project, which targets the provision of one solar watt per person in the country, is part of an agreement with the Indonesian government for Solar Guys to build solar power plants in Indonesia. Solar Guys will act as the engineering, procurement and construction firm for the project. Although an as yet untested market, Islamic bonds have gradually gained awareness in Australia, with local fund manager Crescent Wealth recently tying up with the Bank of London and The Middle East to provide investors with exposure to Sukuk via a Sukuk investment portfolio. Australian laws are also said to be already conducive for the issuance of Sukuk. Solar Guys’ plan could also pip National Australia Bank’s (NAB) earlier speculated Sukuk sale as the maiden Islamic bond issuance by an Australian firm. Reported in April this year, NAB is said to have been in talks for a possible Sukuk sale, with further details on the plan’s development remaining scarce.