On 9 July 2014, the Luxembourg Parliament approved the bill of law on a sale and buy-back transaction of real estate assets to a wholly owned Special Purpose Vehicle (“SPV”) by the Luxembourg State allowing the issuance of a Sukuk with a value of 200 million euros ($275 million). Three prime real estate assets underpin the Islamic bond, including the two towers of the Gate of Europe (Porte de l’Europe) on the Kirchberg Plateau, which is the main financial district and seat of the European Union bodies in Luxembourg. These assets will be sold to the SPV which will benefit from a general governmental guarantee. The SPV issues Sukuk which represents a right against the SPV to payment of a periodic distribution amount. The SPV acts as trustee on behalf of the Sukuk holders and leases the assets back for 5 years to the Luxembourg Government in consideration for a periodic payment of rental which will be equivalent to the periodic distribution amount payable by the SPV to the Sukuk holders. The approval of the bill of law on the issuance of sovereign Sukuk underlines the political will to diversify and develop alternative markets such as Islamic Finance within the financial services industry and establishes the Grand-Duchy as an integrative and diversified world class financial services hub.