Ministry of Finance has assured the state-owned Dharumavantha Hospital will not be sold or mortgaged during any process of selling asset-based Sukuk bonds.
The finance ministry made the statement, following claims that the government is planning to mortgage the hospital to raise USD 300 million through the sale of Sukuk bonds. The finance ministry said Sukuk, or Islamic Shariah compliant bonds, have been included in the State Budget as an Islamic financing instrument to acquire funds for the state.
The ministry said Islamic financing instruments require an asset to be backed in the instrument structure, unlike conventional financing instruments. The ministry said the Sukuk bonds which are planned to be sold in the foreign market with the assistance of the Islamic Corporation for the Development of the Private Sector (ICD), are likewise, asset-based Sukuk bonds.
According to the statement released by the finance ministry, the beneficial ownership of a property would need be transferred to the finance ministry, following the creation of a 100 percent state owned Special Purpose Vehicle (SPV). The statement read the ownership of the property will not be transferred to any party other than the finance ministry, during any process of issuing the Sukuk bonds. The statement further read changing the beneficial ownership of the hospital is not equivalent to selling or mortgaging the hospital.
The finance ministry stated the government is working on acquiring sufficient funds to implement the provisions of the State Budget, taking into account the effects on state debt. The ministry said Sukuk is a popular Islamic debt instrument used in several Islamic and non-Islamic countries around the world.
The finance ministry also called on the media not to spread misinformation regarding the matter, and to verify the truth before publishing any information.