The National Treasury has asked banks for proposals about a government Islamic bond -- known as Sukuk -- in the local and international markets.
"There is a great interest in the Sukuk market and this is the first step towards meeting the growing appetite for government-backed Shariah compliant investments," Lungisa Fuzile, director-general of the National Treasury, said in a statement on Tuesday.
The Treasury invited banking institutions to submit proposals for providing advisory services for the structuring and issuing of Sukuk.
This was in line with its intention to diversify its funding and investor base.
Sukuk refers to a financial certificate that conforms to Muslim strictures on the charging or paying of interest.
Interested service providers should submit proposals by the close of business on December 21 2011.
Shortlisted bidders would be informed by January 20 2012, the Treasury said.
Just R20 for the first month. Support independent journalism by subscribing to our digital news package. 