LUXEMBOURG - CSSF clarifies rules applicable to sukuk

"Issuers of sukuk have recognised the attractiveness of the Luxembourg legal framework for Islamic finance" writes the CSSF in a statement concerning Islamic debt securities.
In order to strengthen further the legal security of sukuk issuers, while ensuring adequate investor protection, the CSSF has issued a statement clarifying certain rules applicable to sukuk, in particular as regards the Annexes to the Prospectus Regulation. (source) 

Sukuk may be treated as asset backed securities pursuant to the provision of Article 2.5 of the Prospectus Regulation or, subject to certain conditions, as guaranteed debt securities pursuant to Article 23.2 and Annex VI of the Prospectus Regulation.  Indeed, Provided that the payments of principal and the periodic revenues under the securities are guaranteed on a contractual basis by one or more underlying entities, in other words, if the payment of principal and the periodic distributions are independent from the performance of the underlying asset, the CSSF considers that the underlying entities may be described in accordance with the provisions of Annex VI of the Prospectus Regulation. ER

Source : http://www.lff.lu/finance/news/news-detail/article/cssf-clarifies-rules-applicable-to-sukuk-1/2/ - Jan 27, 2011