FWU Group closes first tranche of USD 100 million sukuk programme

European based multinational insurance group FWU Group has now closed the US$20 million first tranche, which was oversubscribed, of its US$100 million sukuk al-wakala programme. This transaction is a securitization of takaful (Sharia'a-compliant) insurance policies and provides an opportunity for investors to participate and invest in sukuk certificates backed by Atlanticlux Lebensversicherung, a BBB rated, multinational insurance provider. The sukuk has been assigned an investment grade credit rating by Fitch and will be issued in amortizing tranches, each with a term of five years, and an average life of about 2.5 years. Distributions will be made quarterly to investors on a fully amortizing basis and the profit rate is expected to be 7.00% per annum.