On 23 September, the LuxSE listed and admitted to trading the debut sukuk from Goldman Sachs. The sukuk was issued by a special purpose vehicle named JANY Sukuk Company with Goldman Sachs Group acting as guarantor of the issue.

This issue invests in Sharia-compliant commodities and comprises USD 500 million of trust certificates that come to term after five years, with distribution payments semi-annually.

The structure of the issue is that of a sukuk al-wakala. Under this arrangement, funds are entrusted to an agent (the “wakeel”) and a special purpose vehicle issues trust certificates entitling the holders to a return on their investment and a right to buy all or a proportion of the underlying assets or investments.

The second sukuk is to be listed on 24 September and is the debut Islamic bond issue from the Republic of South Africa.

For a total issue amount of USD 500 million, it will also be the first sukuk in Africa to be issued in US dollars. It will mature in June 2020 and will pay a semi-annual distribution of 3.903%.

This issue, which was more than four times oversubscribed in the primary market, is part of South Africa’s drive to broaden its investor base. It uses an al-ijara structure, a form of lease contract.

These two sukuk listings will be supplemented by a third Islamic bond listing expected for next week.

The LuxSE has been active in providing services for Islamic finance since 2002, when it was the first European Exchange to list a sukuk.