LONDON (Reuters) - A small British manufacturer has become the first company in Europe to raise funds through sukuk, kicking off an industry which has struggled to find traction in the wake of debt worries in Islamic finance centre Dubai.
International Innovative Technologies, a maker of industrial milling machines in northeast England, has raised $10 million (6 million pounds) through a private-equity-style sukuk to help develop new products, its legal adviser, Norton Rose, told Reuters.
Dubai-based Millennium Private Equity Ltd will be the sole investor in the sukuk, which will be listed on the Cayman Islands Stock Exchange. The sukuk will pay 10 percent a year and will expire in 2014.
Editing by Douwe Miedema