Mexico is in exploratory talks to issue sukuk, or Islamic bonds, in an effort to tap new investors, Mexican Deputy Finance Minister Gabriel Yorio said on Thursday, June 1st.
“We have started exploratory talks to expand our investor base via potential entry into the sukuk market, aiming for greater financial ties,” Yorio said while on a visit to Kuwait, Saudi Arabia, Oman, Qatar, and the United Arab Emirates.
The move comes as Mexico aims to deepen trade, financial and diplomatic ties with the Gulf states. It recently launched billions in sustainable bonds as well as a bond buyback to reduce debt.
Yorio said on Twitter that Mexico is looking to create strategic alliances in key economic areas such as food and energy security.
“Mexico has the potential to be a financial hub in Latin America, and expanding our investor base is essential,” he said.
A sukuk is a sharia-compliant bond-like instrument used in Islamic finance. Sukuk involves a direct asset ownership interest, while bonds are indirect interest-bearing debt obligations.
Source: El Financiero
