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Africa’s first shariah-compliant, sustainability-linked sukuk has been listed on the Johannesburg Stock Exchange (JSE).

Engineering News reports that the listing by sustainable agriculture investment company Agrarius Sustainability Engineered (Agrarius) is the company’s first issuance under its shariah-compliant, sustainability-related, asset-backed note programme focusing on the agriculture sector. The programme was registered and given the green light by the JSE in September.

The issuance, under which Agrarius hoped to raise ZAR500 million, was oversubscribed. It has a maturation date of September 2025, but periodical distributions will be made from next year. Because shariah-compliant instruments forbid paying interest, investors are rewarded with a share of the profits.

In terms of the Agrarius sukuk the proceeds must be used for ethical purposes only and will be invested in green, sustainable projects in the agriculture value chain.