London: Luxembourg hopes to adopt a bill before the summer holidays that would allow it to issue its first Islamic bond, with the AAA-rated sovereign opening the door to future sukuk issuance, a filing with the legislature said.
The government requested the legislature’s advisory body, the Council of State, to consider a revised bill on July 1, so it can securitise government assets to back a sukuk worth €200m ($275m). The time frame could see Luxembourg lose out to Britain in issuing the first sukuk from a Western nation, but repeat sukuk issuance could cement a stronger commitment to the Islamic finance industry.
Britain has mandated banks to arrange a £200m ($336m) sukuk in coming days, although officials have previously said this would be a one-off transaction rather than the start of a regular issuance programme.
Both countries are keen to boost their industry credentials to attract more business from cash-rich Gulf countries and tap into the growing market for sukuk.
Reuters
