Pretoria - National Treasury on Tuesday invited banks to submit bids for the issuing of Islamic bonds (Sukuk) in local and international markets.
"There is a great interest in the Sukuk market and this is the first step towards meeting the growing appetite for government backed Shariah compliant investments," Director General Lungisa Fuzile said.
The invitation to interested banks is in line with the Treasury's intention to diversify its funding and investor base.
Sukuk is an Islamic financial certificate similar to a bond that is compliant with Islamic religious law.
Interested banks are expected to submit proposals by close of business on or before 21 December 2011.
"Shortlisted bidders will be informed by 20 January 2012," said Treasury.
