The Law of 12 July 2014 approved the issue of a sovereign Sukuk in the amount of € 200 million by a special purpose vehicle ("SPV") wholly owned by the Luxembourg State.
This first sovereign Sukuk was fully subscribed on 30 September 2014 and the Luxembourg State issued the sovereign Sukuk on 7 October 2014.
The specific conditions of this first sovereign Sukuk, such as its duration, the interest rate and the conditions of repayment are set out in an Arrêté ministériel of 30 September 2014.
The first sovereign Sukuk will benefit from a guarantee by the Luxembourg State in the principal amount of the issue. The Sukuk issue relates to an investment in 3 buildings acquired by the SPV from the Luxembourg State. The SPV will apply the rental income of those assets to the payment to investors, under conditions which are Sharia-compliant.