The GE Capital sukuk for $500 million was priced at 175 basis points over Treasuries, which compares to 155 basis points over Treasuries for recently issued conventional debt. The difference of 20 basis points can be viewed as a 'sukuk premium'. It is unclear what this premium reflects, but it could be due to the relative lack of clarity about how sukuk function either in restructuring or default. The sukuk issuance comes 4 months after GE Capital ended its issuance of debt with a government backstop that began during the credit crisis. While GE Capital was a part of the Temporary Liquidity Guarantee Program, it issued $51 billion in long-term debt and $17 billion in commercial paper.
- Russia could be a promising market for Islamic finance according to Lahem al Nasser writing in Asharq Alawsat.
- The Islamic Bank of Britain is hoping to expand the number of Islamic mortgages it offers by expanding its distribution to other mortgage brokers.
- Siddhartha Herdegen gave a talk about Islamic finance at the University of Utah.
- An event by Credit Suisse focused on how Gibraltar could attract Islamic finance.
- The Tamweel and Amlak merger is on track to be completed in the first quarter of 2010 as the default rate has declined from a high of 3%.
- An article by the Secretary General of Islamic Economics Forum for Indonesian Development (ISEFID) describes the potential for Islamic finance in Indonesia.
- The UAE has taken steps to have its companies and governments become more transparent following the economic and financial crisis.