Corporate sukuk still stymied by pricing, design
They face legal issues and heavy tax burden unless there is special legislation in place
London
SUKUK issuance by governments around the world is expanding, helping to bring Islamic finance into the mainstream. But in one respect, the sovereign issues are proving a disappointment: they are not encouraging sukuk sales by companies.
Legal and product design issues as well as pricing - it can be considerably more expensive for companies to issue sukuk than conventional bonds - are deterring corporate activity.
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