30 October 2005

LMC launches the first free web based secondary market initiative for Sukuk

Bahrain, 30 October 2005 – Liquidity Management Centre (LMC) has launched another milestone secondary market initiative in order to promote expansion of the secondary market in Sukuk. Part of LMC’s founding mandate was to play a central role in the establishment and expansion of an active primary and secondary market in Sukuk (Islamic Bond) instruments, hence promoting the growth of the Islamic Capital Market. LMC remains very much committed to the attainment of this part of its mandate.

Mr. Aref A. Kooheji, LMC’s Chairman commented: “This is another important initiative undertaken by the Centre to promote its mandate of playing a key role in the establishment and growth of an active secondary Sukuk market. We believe the service will serve the interests of both Islamic and conventional investors.”

Sukuk Bid/Offer registration Service

The Sukuk Bid/Offer registration service will be launched by LMC on its public domain website: www.lmcbahrain.com and will be made available to financial institutions, investment entities and corporate entities. The service shall be one which free of charge to users. Given the open access to the service on LMC’s website, visibility of all registered bids and offers will exist for any interested market participants. LMC expects to have the bid/offer registration service fully operational by the end of October 2005.

In addition to the above, LMC will also avail a select range of indicative Sukuk pricings on its website.

Sukuk Modelling on Bloomberg

In addition to its proprietary website service LMC has worked closely with Bloomberg to model an extensive number of Sukuk on Bloomberg’s proprietary system. These can be accessed by Bloomberg users on the “SUKU” page. This now permits Sukuk market participants/investors to run the wide array of analysis which is currently available on conventional bonds and other capital market instruments. Such tools will also support Sukuk portfolio managers in their analytical decision making.

LMC’s Chief Executive Officer, Mr. Ahmed Abbas commented: “I am pleased to be able to provide a further market supporting service which is available to all Sukuk market participants. Since inception, LMC has been methodically increasing the range and scope of services it provides to the market, with our mandate at the forefront of our minds. At this time I would like to thank my Senior Management and technical staff for the support and hard work they have put into making the Sukuk price registration service a reality. We at LMC believe that the above service will prove a useful secondary market development tool.”

About Liquidity Management Centre:

LMC is an active player in the primary Sukuk (Islamic Financing) arranging and advisory market and also in the establishment of a secondary market for short term Islamically compliant treasury products across the GCC region. LMC also has the capability to arrange other innovative Islamic investment instruments of varying risk and return profiles at different tenors.

LMC can be reached on +973 17541666 or via its website @ www.lmcbahrain.com.

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