10 Jul 2012
(MENAFN) Qatar’s proposed US dollar Sukuk Trust Certificates won the ‘AA’ rating from Standard & Poor’s (S&P) Ratings Services, Reuters reported.
The sukuks are to be issued by state-owned SoQ Sukuk A QSC, a special purpose vehicle (SPV).
The issuance of sukuk is to be made via the Shariah principle of ijara (leasing), and the assets backing the lease will be state-owned buildings and land in Qatar, S&P said in a statement.
On maturity (dissolution of the trust), SoQ Sukuk B QSC, a second SPV wholly owned by the state and registered in Qatar, will purchase the lease assets from SoQ Sukuk A at the relevant exercise price, as specified in the purchase undertaking, S& P explained in the statement.
S&P said that Qatar, the largest LNG exporter in the world, has a strong incentive to consider the performance of the trust certificates to be as important as its conventional debt, as the rationale for the transaction is to raise funds in accordance with Islamic principles, rather than to separate the state’s own obligations from those of the issuer, SoQ Sukuk A.
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