The Luxembourg Stock Exchange (LSE) is gearing up to match London in terms of Sukuk documentation.
Anzal Mohammed, senior associate at Allen & Overy, has affirmed the LSE’s bid to relax Sukuk rules, with only transaction summaries required, rather than full details of the Sukuk’s underlying assets. However, he added: “It’s not exactly the same and it’s still considered best to be asset-backed, but they will not apply the same disclosure rules to securities.”
The LSE last listed a Sukuk in July 2005, due to the implementation of the Prospectus Directive, making it harder for Sukuk to list within the jurisdiction.
Anzal highlighted: “London has the prestige that will attract some issuers. Luxembourg clearly wants to be a part of this competition.”