Islamic finance in Europe (80)

Continuation

2.4.2 GERMANY

Federal state of Saxony-Anhalt issued the country’s first Islamic bond (sukuk) in 2004.

Thus, Germany was the first Western country to tap the Islamic capital market.

The paper attracted strong demand and was fully subscribed.

60% of the issue went to investors in:

-      Bahrain

-      and the UAE.

The remaining 40% to investors in Europe, particularly those in:

-      France

-      and Germany.

The €100 million ijarah sukuk (Islamic sale-and-leaseback debt instrument) was fully redeemed in 2009.

From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)