The country, which has an AAA credit rating at Moody’s Investors Service, Standard & Poor’s and Fitch Ratings, is planning to become the second non-Muslim nation to issue a sovereign Islamic bond after the U.K. raised 200 million pounds ($335 million) in June. Ministry of Finance officials will meet investors in , the , and from the end of September to promote the proposed sale, according to an e-mailed statement Aug. 7.
Issuing a sukuk, which pay returns on assets to comply with Islam’s ban on interest, would help Luxembourg diversify its status as a financial center and develop new skills to help it stand out from other European hubs, according to the finance ministry’s website. The ministry is planning to use three government buildings as assets in the deal, it said.
Officials will visit the U.K., , Saudi Arabia, the United Arab Emirates and Qatar to market the bond to local institutions, according to the e-mailed statement.
The yield on the U.K.’s sukuk fell 11 basis points this month to 1.87 percent on Aug. 4, according to data compiled by Bloomberg.