The Shari'ah Supervisory Committee of the International Islamic Financial Market (IIFM) has endorsed Tabreed Finance Corporation's $100 million trust certificates. It is the first global corporate Sukuk to be listed on the Luxembourg Stock Exchange.
"As the first global corporate Sukuk issue, the offer is really a ground breaking and a benchmark for future corporate Sukuk offerings," said Chief Executive Officer of IIFM, Abdul Rais Abdul Majid. "It will open the door to the corporate sector to tap the fast growing Sukuk market. Regular corporate Sukuk issuances will definitely add depth to the market and help in creating an active Islamic secondary market," he said.
The five-year global corporate Sukuk provided a fixed coupon of 5.50 percent. It is a combination of Ijarah Istisna and Ijarah Mawsufah fi al dhimmah or forward leasing contracts.
The National Investor is the sole adviser and arranger. It also acted as Joint Lead Manager with Credit Swiss First Boston (CSFB). Emirates Bank joined as Co-Lead Manager. Shamil Bank of Bahrain, Kuwait Finance House and National Bank of Sharjah acted as Co-Managers.
IIFM was established in 2002 through a multilateral effort. The main mission of the IIFM is to create an environment that would encourage active trading of Shari'a-compatible instruments among Muslim countries and among Islamic and conventional financial institutions. — (menareport.com)
© 2004 Mena Report (www.menareport.com )