First Sukuk bond issued through LuxCSD


LuxCSD successfully handled the issuance and settlement of Luxembourg’s first Sukuk sovereign bond, following the implementation of the new Sukuk law in Luxembourg in July 2014 to establish a centre for Islamic finance outside of the Islamic world.

The first ever EUR-denominated sovereign bond in Sukuk format with a notional amount of EUR 200 mn and a five-year tenor issued by the Grand Duchy of Luxembourg was distributed to primary markets on 30 September 2014. On settlement date, 7 October 2014, LuxCSD successfully handled the issuance and delivery-versus-payment (DVP) settlement in EUR central bank money during the night, giving issuers access to their funds at the central bank in the early morning.

Philippe Seyll, Chairman of the Board of LuxCSD, said: “Supporting the first sovereign Sukuk bond issuance in Luxembourg is part of LuxCSD’s mandate to strengthen Luxembourg’s financial place as an issuance and distribution hub for all types of securities including Sharia-compliant instruments. We are particularly pleased that the Grand Duchy of Luxembourg places its trust in LuxCSD to handle its first Sukuk issuance. We fully support Luxembourg in its efforts to diversify its status as a financial centre for Sharia- compliant instruments and to stand out from other European hubs.”