Luxembourg issues euro Sukuk transaction

 Luxembourg issued the first euro-denominated Sovereign Sukuk (Islamic bonds) on September 30, "Luxembourg for Finance" web magazine reported on Thursday.
It noted that Luxembourg issued its landmark Sukuk transaction, a 200 million euro, five year Sukuk after the approval of the Sukuk Law on July 20 , 2014.
The Sukuk priced early afternoon London time, at a profit rate of 0,436%, with a final order book more than two times oversubscribed, from a total of 29 accounts placing orders.
In terms of geographic distribution, 61% was placed in the Middle East and North Africa, 20% in Europe and 19% in Asia, whilst allocation by investor type was 50% to Central Banks and Official Institutions, 40% Banks and 10% to asset managers.
Pierre Gramegna, Minister of Finance of Luxembourg said "I am most pleased with the success of this transaction, which illustrates Luxembourgآ’s commitment and expertise as a leading center for Islamic finance in the Eurozone." The Sukuk will be listed and admitted to trading on the Euro market of the Luxembourg Stock Exchange.