Luxembourg Parliament enacts law approving the issuance of a sovereign Sukuk

Luxembourg has on 9 July 2014 enacted a law approving the issuance of a sovereign Sukuk in an amount of 200 million euro by an SPV wholly owned by the Luxembourg State. The Sukuk will benefit from a guarantee of the Luxembourg state in the principal amount of the issuance. The Sukuk issue relates to an investment into 3 buildings acquired by the SPV from the Luxembourg State. The SPV will apply the rental income of such assets to the payment to investors, in conditions which are Sharia compliant. The duration of the Sukuk is 5 years.

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