Wednesday, October 19, 2011

U.S. Taxpayers' Bailout Money Used To Finance $2 billion Islamic Bond Program



Goldman Sachs has registered a $2 billion Islamic bond programme, providing further evidence of conventional borrowers looking to sharia-complaint funding sources as market volatility makes raising debtfinance more difficult.
The investment bank has set up the Cayman Islands-registered Global Sukuk Company Limited special purpose vehicle to issue murabaha-structured sukuk, according to a base prospectus filed with the Irish Stock Exchange.
Murabaha is a cost-plus-profit arrangement which complies with Islamic law.
"In the current environment it is unsurprising to see borrowers turning to markets in which they believe liquidity is still available," Chavan Bhogaita, head of markets strategy unit at National Bank of Abu Dhabi, said.
read the whole thing here

I guess that Goldman Sachs wasn't too honest when they revealed where bailout cash went

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