Dubai
London Stock Exchange on Wednesday welcomed the largest Sukuk bond to be issued by a supranational globally in 2017, raising $1.25 billion.
Listed by Saudi Arabia based, triple-A rated, Islamic Development Bank, it is a five-year bond with a 2.393 per cent yield and reinforces London’s position as a key global venue for Islamic finance. To date nearly $50 billion has been raised through 66 Sukuk issues on London Stock Exchange. The Islamic Development Bank is a long-standing London Stock Exchange issuer.
“The UK was the first country in the Western world to ever launch a Sukuk bond and London Stock Exchange is today delighted and honoured to list the largest ever Sukuk bond by a supranational so far this year — an issue which received strong international investor demand,” Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group said in an emailed statement.
“Today’s listing demonstrates London’s standing as the world’s most international financial centre and confirms the UK as the key destination for foreign Sharia-compliant financial products and institutions. The diverse geographical distribution shows London provides access to a truly global, deep, and liquid investor pool,” he added.
This listing adds to the broad range of Islamic finance products available to investors on London Stock Exchange, reflecting our commitment to being the largest western hub for Sukuk bond issuance.
London Stock Exchange also has a vibrant market in Exchange Traded Funds (ETFs) including three Sharia-compliant ETFs based on Islamic indexes. Meanwhile, over 20 banks offer Islamic financial services in the UK.
