Khaberni - Greater Amman Municipality has announced its strategic direction to restructure its debt, which amounts to about one billion dinars, and to turn it into an investment opportunity through the issuance of Islamic Sukuk, in a step aimed at enhancing financial sustainability and reducing the cost of debt service.
The Municipality stated, in a statement today, Sunday, that the debt associated with real estate and investment assets will be restructured through the issuance of Islamic Sukuk distributed over three tranches; the first with a value of 400 million dinars, the second with 300 million dinars, and the third with 300 million dinars, ensuring a diversification of the investor base and expanding the scope of participation.
The Municipality explained that its previous resort to borrowing was to meet the requirements of necessary expropriations to implement development projects and open roads, in addition to facing financial challenges imposed by the COVID-19 pandemic, to ensure the continuity of basic services to citizens.
The statement noted that the shift towards Islamic Sukuk was based on specialized studies and extensive consultations, and received approval from the Council of Ministers; due to its positive effects in improving the efficiency of public debt management and enhancing investment attractiveness, and turning the debt into an effective investment tool.
The Municipality emphasized its identity as a non-profit service institution, confirming that any financial savings achieved from this step will directly reflect on improving the services provided to the city of Amman and its residents, and supporting sustainable urban development projects.
It is planned to launch the first tranche of Sukuk worth 400 million dinars as a first phase, followed by the other tranches sequentially, enhancing the Municipality's ability to implement its future plans and serve citizens with high efficiency.
