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AAA Guarantee Gives 1st Tunisia Sukuk Pricing Power: Arab Credit

The backing of an AAA rated Islamic bank is a boon to the debut sukuk Tunisia plans by July.

The North African nation, which triggered the so-called Arab Spring uprisings in 2011, is planning to sell more than $100 million of Shariah-compliant bonds guaranteed by the Islamic Development Bank, a top-rated lender owned by Muslim countries, Finance Minister Hakim Ben Hammouda said in a May 2 interview in the capital, Tunis. That will help keep borrowing costs lower than they would be otherwise, said Mourad El Hattab at STB Bank.