| Goldman Sachs’s first foray into the Islamic bond market looks too clever by half. The Wall Street bank has secured approval from top sharia scholars for its maiden $2-billion (U.S.) bond. But by opting for an innovative and controversial structure, Goldman has invited criticism of its Islamic finance credentials.
Sharia rules prohibit interest payments, requiring financial transactions to be structured as profit-sharing agreements. Most Islamic bonds are based on a structure called ijara...........................................Full Article: Source
|