LUXEMBOURG: Luxembourg’s parliament could pass a bill as soon as two months from now to facilitate its first issue of sovereign sukuk, though an upcoming budget vote may delay approval for five months, a legislative official said.
Last month, the Luxembourg government presented a bill to parliament to allow the securitisation of assets for a proposed sukuk worth ¤200m, part of efforts to boost the tiny state’s Islamic finance credentials.
AAA-rated Luxembourg could pip Britain’s ambitions to become the first Western country to issue a sovereign sukuk. Last year, Britain unveiled plans to sell a £200m sukuk and it has mandated HSBC to advise on the deal, giving a “2014-2015” timeframe.
Legal filings show Luxembourg’s sukuk would be denominated in euros and listed on an exchange, but such details are not final.
Luxembourg’s Stock Exchange was the first in Europe to list a sukuk in 2002; it has since listed 16 with three of them currently outstanding, said LSE secretary general Maurice Bauer.
Reuters
