Kuwait's IIG defaults on $200m sukuk

Investment house becomes the third regional default of an Islamic bond since financial crisis began.
Kuwait's IIG defaults on $200m sukuk
By Frederik Richter
Tue 13 Apr 2010 01:25 AM

Kuwait's International Investment Group (IIG) said it was unable to pay the coupon of a $200 million sukuk, in at least the third regional default of an Islamic bond since the financial crisis began.

In a filing with Nasdaq Dubai, IIG said: "Kindly be advised that IIG has communicated to the sukukholders through IIG Funding Limited (Issuer of its US$ 200 million Sukuk) of its inability to make the periodic distribution amount of USD$ 3,353,062.50, due on April 12..."

Kuwaiti investment houses were hard hit during the financial crisis and Investment Dar was the first company in the region to default on a major sukuk in May 2009.

The sukuk issued by IIG that matures in July 2012 last traded at a bid value of 20, according to Thomson Reuters data. (Reuters)

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