Luxembourg is poised to test demand for Shariah-compliant bonds (sukuk) as the issuer of the lowest-yielding sovereign sukuk on record plans to become a regular borrower. Luxembourg, one of the smallest economies in the 28-member European Union, sold 200 million euros ($254 million) of five-year Islamic bonds in September priced two basis points below midswaps. That […]
The sukuk was issued through ZAR Sovereign Capital Fund Proprietary Limited, as trustee of The RSA Sukuk No. 1 Trust (each established in the Republic of South Africa). The sukuk was offered within the United States to “qualified institutional buyers” (who are also “qualified purchasers” under the Investment Company Act 1940) in reliance on Rule […]
Luxembourg issued a €200 million sukuk, the first from a Eurozone country and a euro-denominated sovereign Shariah-compliant bond. http://gulfnews.com/business/markets/luxembourg-s-200m-sukuk-oversubscribed-two-times-1.1393542
Luxembourg on the Brink of Shariah-Compliance
The quest for petrodollar capital is prompting Luxembourg to issue a Shariah bond. There is still hope that Luxembourg might be brought back from the brink, however. The transaction is being scrutinized by the Council of State, a body which advises the national legislature and they’re exhibiting appropriate skepticism… “First, in the world of finance, […]
Enviro investment movement goes Shariah-compliant
The Green movement is going Shariah… What we do not understand from the passage below is how perfume manufacturing can possibly be Shariah-compliant. Nevertheless, it does seem that the environmental movement has thrown in with the financial jihad… Forestry fund managers apply Sharia for Middle East edge Two fund managers are marketing Sharia-compliant sustainable forestry […]
London and Luxembourg are engaged in a “battle of the listings domicile” especially for sukuk and Islamic investment funds, and its seems that the London Stock Exchange (LSE) currently has the upper hand on its counterpart in the Duchy, Luxembourg Stock Exchange. http://arabnews.com/economy/islamicfinance/article448955.ece
Luxembourg Puts Sukuk on Hold
The tiny European/NATO nation Luxembourg is one of the wealthiest small nations on earth. As you probably expected, Middle Eastern petro-wealth has found its way into influencing Luxembourg’s policies. This includes pressure on the country to issue a sukuk (Islamic bond) for its sovereign debt. This week, Luxembourg decided not to issue a sukuk. We […]
Not long ago, the Islamic Financial Services Board (IFSB) was holding a summit in Tehran, Iran, which certainly indicates where that body stands on the issues of Jihad, state sponsorship of terrorism and nuclear proliferation. Now, in May, the IFSB will hold a summit in NATO/EU member Luxembourg. At this point we should refer to […]
In order to strengthen further the legal security of sukuk issuers, while ensuring adequate investor protection, the CSSF has issued a statement clarifying certain rules applicable to sukuk, in particular as regards the Annexes to the Prospectus Regulation. Sukuk may be treated as asset backed securities pursuant to the provision of Article 2.5 of the […]
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