'We have already secured at least 50 per cent of the target subscription,' says a senior LMC official. The sukuk will be listed on the Bahrain Stock Exchange [BSE] but is open to all Gulf investors. The five-year paper carries an 8 per cent coupon.

BSH is the latest in a string of corporates turning to the increasingly popular Islamic leasing instrument to raise funds. Dubai-based real estate developer Emaar Propertiesis planning to issue a five-year, $50 million sukuk, also lead managed by LMC (MEED 31:10:03). Abu Dhabi-based National Central Cooling Company (Tabreed)plans a $100 million issue in early 2004, lead managed by the UAE's National Investor(MEED 31:10:03). Another local corporate is understood to be preparing to launch a sukuk before the end of November.