Solar Sukuk Lights the Way to Alternative Funding Sources: Australia, Indonesia and Malaysia Working Together

Solar Sukuk shows the way forward in alternative financing solutions. Image courtesy of Shutterstock.

This article was originally published on 17 March 2015 by Rebecca Clow and Jonathan Lawrence, on K&L Gate Publications.

SGI-Mitabu, a joint venture of two Australian solar companies, The Solar Guys International and Mitabu Australia, has revived its plans to fund its Indonesian 250 megawatt solar project with Islamic compliant funding. The solar project will require up to AUD550 million of financing. Commencing in July 2015, the first phase of the project will be funded through an offer of AUD150 million of sukuk (a type of Islamic investment instrument, similar to a bond).

SGI-Mitabu will offer its sukuk in Labuan, Malaysia. Labuan is an island off the coas...