04.01.2012 - Goldman defends Islamic bond program as conforming to Shariah law
A program begun by Goldman Sachs in October to offer a $2 billion sukuk that conforms to sharia law has been defended by an advisor to the firm. The program, registered with the Irish Stock Exchange and issued through a Cayman Islands-registered special purpose vehicle, Global Sukuk Co Ltd., was undertaken to issue a sukuk (Islamic bond program) based on murabaha, a cost-plus-profit arrangement that is compliant with Islamic law. However, according to a Reuters report, there have been criticisms of the program from some analysts, who say Goldman might use the proceeds to lend money to clients who would have to pay interest; that would be against Islamic law...............................................Full Article: Source
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