Goldman Sachs Said to Hire Banks for Debut Islamic Bond Sale - Bloomberg

Goldman Sachs Said to Hire Banks for Debut Islamic Bond Sale - Bloomberg:



"Goldman Sachs Group Inc. (GS) is planning its first foray into Islamic capital markets three years after starting a sukuk program that it never used.



Five banks including the New York-based lender will manage the dollar-denominated offering via JANY Sukuk Co., four people with knowledge of the deal said. A benchmark-sized sale may follow, they said, asking not to be identified as the plan is private. Goldman Sachs in 2011 created a $2 billion program that faced criticism from some Islamic advisers for not ensuring debt would be traded at par value, as required by Shariah.



Goldman Sachs is joining a growing number of issuers seeking to tap demand among Muslim investors in an industry that Ernst & Young LLP forecasts will double in the five years through 2018 to $3.4 trillion. The U.K. became the first non-Muslim country to issue Islamic bonds in June with a sale that lured bids for more than 10 times the amount offered. Luxembourg and Hong Kong are also planning investor meetings for similar offerings."



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