Published: November 23, 2009
GE Capital, the finance arm of conglomerate General Electric, has issued its first sukuk to investors in the Middle East, Asia and Europe, raising US$500mn.
The deal makes GE Capital the first US corporate to issue an Islamic bond.
“This transaction is strategically important for GE as it establishes yet another way of raising funds from an important investor base,” said Kathy Cassidy, GE’s senior vice president and treasurer, in a statement. “We have been focused on diversifying our alternative funding sources to include global deposits and covered bonds, and transactions such as the sukuk allow us to make progress in meeting our objectives.
“We intend to be regular issuers in the sukuk market and are heartened by the support we have seen in this first transaction.”
The company will use the proceeds for general corporate purposes.