The Cyprus Stock Exchange is engaged in talks with foreign bourses in a bid to list Islamic bonds on the Cypriot stock market, CSE CEO Nondas Metaxas said in an interview with CNA.
The listing of Islamic bonds, also known as Sukuk, is considered a way to attract liquidity in the crisis-hit CSE, whose trading volume declined to record low levels due to the financial meltdown of 2013 in Cyprus.
“The listing of such bonds (in the CSE) could yield millions of dollars as well as significant liquidity in our market, with multiple benefits through the attraction of considerable capital,” Metaxas said.
“We are holding contacts with Cypriot companies and foreign firms in the north as well as in the East and South and we are discussing possible cooperation through alliances of bourses on the introduction of Islamic bonds, which are very important. It is not an easy matter, as there are many issues to be resolved.”
Metaxas also said the CSE is in discussions over possible cooperation with two large groups of European stock markets which, he explained, would assist in resolving basic growth problems facing the Cypriot economy and the stock market.
He said there was great interest from Cypriot-owned and foreign companies on the CSE`s emerging Companies Market (ECM), noting that he is currently in talks concerning the listing of a Greek large energy company, whereas the CSE board has approved the listing of a UK company.
The ECM market has companies from Russia, Ukraine, Israel, China, Greece and Cyprus, he said, adding this market represents “the internationalisation of the Cypriot economy and we all should support this effort.” (CNA)