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)For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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