GE’s sukuk

Largely untested Islamic finance structures have, as we all know, been drawing unwanted scrutiny due to Dubai World’s recent debt-standstill antics.

However, that hasn’t stopped western corporates from adopting Islamic debt structures in a bid to raise much needed financing from alternative non-Western sources.

On November 19, General Electric became the first US corporate to issue an al-ijara Islamic bond — the $500m sukuk being marketed to investors in the Middle East, Asia and Europe. The industrial conglomerate reportedly saw strong demand for the issue, with orders coming in at under $1bn, according to bankers familiar with the deal.