News Column

Luxembourg plans investor meetings for debut Sukuk

August 12, 2014

Luxembourg will begin meeting investors over the next two months to build support for its debut Sukuk, according to reports by Bloomberg and Reuters.

Luxembourg passed a bill in July under which the Government will become the second European sovereign, following the UK, to issue a Shari'ah-compliant bond (see Luxembourg Sukuk bill passes into law).

The investor roadshow will visit London, Saudi Arabia, the UAE, Malaysia and Qatar. Luxembourg plans to use three government properties to back Sukuk worth EUR 200 million ($268 million).

Two of the buildings are located in the heart of the Kirchberg business centre: the "Gateway to Europe" Towers A and B in front of the conference centre of the European Council. The third office building is located in Mamer. The state will become the tenant of three buildings, one of which is occupied by government departments (ITM and ADEM), the other two are subleased by the State Parliament. The buildings will be held for the duration of the transaction in a Luxembourg company (private law) and remain 100 per cent owned by the State for the duration of the transaction as well.

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Source: CPI Financial

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