Islamic Finance at the London Stock Exchange

London - a global hub for Islamic finance
London is well established as the gateway for Islamic finance in Europe due to a unique combination of factors: • the depth and breadth of the London capital markets, providing companies and issuers of financial products with access to a wide pool of investors and secondary market liquidity • the commitment of the UK Government to developing Islamic financial markets with a series of tax and regulatory changes to offer a ‘levelplaying field’ between conventional and Islamic products • an open, flexible and attractive tax and regulatory structure for facilitating Islamic finance transactions • the largest number of Islamic financial institutions operating in any western country - to date the FSA has authorised five wholly-Islamic banks, one Shariah-compliant hedge fund manager, one dedicated Takaful and there are over 20 conventional banks providing Islamic financial services through Islamic ‘windows’ • an established pool of specialist expertise - London has an advisor base of over 200 international law firms, the Legal 500 cites 16 major London law firms with specialist Islamic finance expertise and experience, and Londonbased international law firms have been at the centre of many landmark Islamic finance deals, advising both governments and companies on a wide range of ground-breaking and award-winning structures • a long tradition of financial innovation and a truly international outlook

Benefits of a London Listing
London is the venue of choice for many international issuers, offering: • the prestige of a globally respected exchange - listing on such a highly visible market allows a company to raise its profile with investors worldwide • competitive listing costs – London is the only major listing venue which does not charge an annual fee to issuers of debt securities and alternative finance investment bonds such as sukuk • efficiency and specialist knowledge of UK Listing Authority - UKLA specialists offer a personalised service throughout the listing process, issuers and advisors can contact the UKLA directly to discuss proposed transaction timetables or technical matters without the need for an intermediary – there is no requirement for a listing agent or sponsor to manage the relationship between UKLA and issuer

The London Stock Exchange’s markets for Islamic finance
• Sukuk over US$ 17.7 billion has been raised through 28 Sukuk issues on the London Stock Exchange,more than any other global exchange, including: – GE Capital Sukuk - first sukuk to be issued by a major US corporate issuer, November 2009 – Central Bank of Bahrain, first sovereign Sukuk listed in London, March 2008 – Aldar Funding, US$2.53 billion issue and first Sukuk on the Professional Securities Market, March 2007 ETFs the London Stock Exchange’s ETF market offers seven Shariah-compliant ETFs: – iShares ETFs on MSCI World Islamic, MSCI USA Islamic and MSCI Emerging Markets Islamic indices – db x-trackers, the ETF provider of Deutsche Bank, ETFs on S&P Japan 500 Shariah, S&P 500 Shariah, S&P Europe 350 Shariah and DJ Islamic Market Titans indices AIM the shares of four Islamic institutions re quoted on a AIM, the London Stock Exchange’s Alternative Investment Market for growing companies – Islamic Bank of Britain, the first wholly-Islamic retail bank in Europe – European Islamic Investment Bank, the first Shariah-compliant wholesale bank in Europe – The Family Shariah Fund – Shariah Capital

Choice of Markets
For Sukuk, the London Stock Exchange offers the choice of two routes to market: • Main Market – EU-Regulated under MiFID, ensures the highest standards of disclosure and regulatory oversight – London listings can be passported to other European markets • Professional Securities Market – Exchange-regulated, offers the benefits of listing with more flexible regulatory requirements – allows listing of debt securities without the requirement for a full prospectus, only listing particulars are required – disclosure requirements are tailored to wholesale needs and can be governed by domestic GAAP Further Information More details of the London Stock Exchange’s markets for Islamic finance are available on our web site at: Further information is also available by contacting us at: Fixed Income Markets London Stock Exchange 10 Paternoster Square, London, EC4M 7LS Tel: +44 (0)20 7797 3921

PM00008_Islamic Factsheet

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