GE To Launch A New Sukuk (GE)

GE Capital

is planning to issue its second Islamic bond. According to Reuters, Aris Kekedjian, chief executive of GE Capital Middle East and Africa, said the new issue would likely be a benchmark issue. Last year, GE issued its first Islamic bond or sukuk and raised $500 million. Kekedjian further said, “We're not a one-off issuer, we don't have any compelling need to issue sukuk, other than to be smart in this region." The issuance is likely to be made later this year or in early 2011. The company executive said that tapping Islamic investors is the part of GE’s strategy to increase its presence in the Middle East. He also said that he expects other major players to follow GE’s lead in issuing sukuks.