FAIRFIELD, Conn. (
has sold $500 million worth of five-year Islamic bonds, making it the first major U.S. corporate issuer of what is known as "sukuk," according to
The Wall Street Journal
Islamic bonds make "profit distributions," to investors, as interest payments are not allowed under shariah law, according to
. The market for these bonds has struggled due to the financial crisis,
reports, although, it is seen as having great promise.
noted a year ago that Muslims account for 20% of the world's population but Islamic financial instruments represent less than 1% of the total.
GE's Islamic-compliant bonds yield 1.75% over Treasuries, compared to 1.55% on a $1.5 billion issue by GE Capital on Nov. 10, according to
were among the underwriters of the deal, along with
Liquidity Management House for Investment Co.
National Bank of Abu Dhabi
, a GE spokeswoman told
Written by Dan Freed in New York