Additional stability of the Bank
Bosna Bank International introduces Sukuk into its operations
BBI Bank introduced sukuk, an Islamic form of bond, after investing 10 million euros in Islamic debt securities issued by Islamic Bank for Reconstruction (IsDB), the strongest institution in Islamic banking with the best credit ratings worldwide. The investment was realized through Abu Dhabi Islamic Bank (ADIB), which provided brokerage and custody services to BBI Bank.
“We are proud that the Bank has managed to invest in Islamic debt securities, which are in high demand at the global level, and in addition, access to this type of investment is very limited. Thanks to the dedicated work of our employees, we introduced a new product specific to the capital market in a short period of time. With this, the Bank diversified its investment portfolio and became the first and only bank on our market to include sukuk in its investment operations, which will enable excess funds to be placed in innovative ways on the capital market, generating returns from other sources that will further strengthen stability of the Bank,” emphasized Haris Kovačević, director of the Assets and Financial Institutions Sector.
Sukuk is a product of Islamic finance in which the owner assumes the risk of return while his compensation corresponds to a share in the profit, and according to the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) it serves to raise funds for long-term investments.
The management of BBI Bank congratulates the members of the Assets and Financial Institutions Sector who actively worked to create the environment that led to the Bank becoming the first in Bosnia and Herzegovina. the market introduced sukuk.
