The secondary listing of the USD700 million Trust Certificates (Sukuk) due 2010 of Qatar Global Sukuk on LFX today marks the 14th listing on LFX.
Chairman of LFX Board of Directors, Dato' Mohd Azlan Hashim said the listing of the Qatar Sukuk is a significant step forward for LFX in meeting one of its key objective of bridging requirements for international Islamic financing.
"LFX is certainly committed in accelerating its development as the premier exchange for the listing of Islamic financial instruments from all over the world.
"The inaugural listing of the Qatar Sukuk is testimony to the continuing confidence of international investors in the capability of LFX," he said.
The Sukuk has an A+ rating by Standard & Poors Rating Services and was listed on the Luxembourg Stock Exchange on 9 October 2003. The Sukuk has also been endorsed by the Bahrain-based International Islamic Financial Market (IIFM) in September 2003. LFX recently signed an MOU with IIFM to establish a framework for greater co-operation and to pave the way for both organisations to jointly develop an Islamic Capital Market with an enhanced global reach.
CIMB (L) Ltd, a wholly owned subsidiary of Commerce International Merchant Bankers Berhad (CIMB) was appointed as the listing sponsor for the Qatar Sukuk. Recently, CIMB was voted the Best Domestic Market Sukuk House in Euromoney's Islamic Finance Award published early this month. HSBC Bank Plc and Qatar International Islamic Bank are Joint Lead Managers for the offering of the Sukuk while CIMB was appointed as the co-manager for the Far East region. Head of CIMB Islamic, Badlisyah Abdul Ghani said Qatar's decision to list its Sukuk on LFX will facilitate access to investors in the Far East, apart from familiarising investors with Sukuk type structures.
"We hope other sovereigns, especially those in the Middle East, will issue more Sukuk and list them on LFX. It would be good if the Islamic Development Bank and the Bahrain government were to also list their respective global Sukuk on the LFX.
"It is important for more quality issuers to come to the market in order for the global Islamic capital market to develop," he said.
Sukuk means Islamic certificates or Notes and is similar to Trust Certificates issued by other conventional issuers. The Qatar Sukuk is the fourth Syariah compliant instrument listed on LFX. Other Islamic instruments on LFX are the Kumpulan Guthrie Berhad Serial Islamic Lease Sukuks due 2004 (USD 100 million) and 2006 (USD50 million) and the Government of Malaysia Sukuk Trust Certificates due 2007 (USD 600 million).
As a web-based exchange at www.lfx.com.my, LFX offers market participants and investors around the world, fast and efficient access to its services. Wholly owned by the Kuala Lumpur Stock Exchange, LFX is an international offshore financial exchange that facilitates the listing of a multitude of multi-currency instruments and allows the issuer the flexibility to structure the instruments that best suit their funding needs.
