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Monday, Oct 27, 2014

World

Luxembourg finance minister says more sukuk issues possible

Reuters | Monday, Oct 27, 2014

Malte's Finance Minister Edward Scicluna (C) speaks with Luxembourg's Finance Minister Pierre Gramegna (R) and Portuguese Finance Minister Maria Luis Albuquerque.

DUBAI - Luxembourg is open to the idea of making more sovereign sukuk issues after conducting its first such issue at the end of last month, Luxembourg finance minister Pierre Gramegna said on Monday.

In an interview with Reuters while visiting Dubai for an Islamic finance conference, Gramegna said, however, that there were no immediate plans or time frame for additional issues.

Luxembourg's debut issue was 200 million euros (S$323 million) in size and had a five-year maturity. It used an ijara structure, a lease-based transaction that is common in Islamic finance.

Gramegna said Luxembourg was exploring structures other than ijara to avoid the difficulty of finding physical assets to back sukuk.

He said the 200 million euro size of the debut issue was"good for us" but added that smaller issues might be possible as well, as they could appeal to corporations.

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