Luxembourg sovereign sukuk more than twice oversubscribed

LuxembourgThe order book for Luxembourg's first euro-denominated sovereign sukuk was more than twice oversubscribed when the €200 million Islamic bond with a five-year maturity was issued yesterday.

The country's Ministry of Finance describes the transaction as a "landmark" in establishing a global hub for Islamic finance outside the Islamic world.

Luxembourg has a sovereign credit rating of AAA. It approved the sukuk law on July 12, and the country held a roadshow in September, visiting Jeddah and Riyadh in Saudi Arabia, Abu Dhabi, Dubai in the United Arab Emirates, Kuala Lumpur in Malaysia, Doha in Qatar, and London.

The ministry says the sukuk was priced at a profit rate of 0.436% early afternoon London time, with a final order book more than two times oversubscribed, from a total of 29 accounts placing orders.

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