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| My Orchids. Oncidium "Sukuk". Photo ET |
First Sukuk issued in
Luxembourg
“Luxembourg’s Sukuk
represents the first ever European Monetary Sovereign to issue Sukuk. The order
book being only twice over subscribed indicates less than stellar demand and is
to be contrasted to the UK’s recent Sovereign which was ten times over
subscribed.”
There were 29 bidders.
As the first ever
issue, the sukuk listed on the Luxembourg Stock Exchange, has of course test balloon
value. It ddidn't fall flat, but it wasn't stellar either, compared to the
London threshold. If the Luxembourg government hoped for more interest, what
would explain the “less than stellar” interest? It can only be two categories
of reasons: a lack of marketing, or some level of lack of confidence in the
issuer/euro/financial center/Euro Zone.
Prescription in view of next number two: drum up marketing, talk up the
relatively good issue number one,
and prepare for a better roadshow.
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