Capitalism That Crosses Cultures
Will U.S. firms embrace Islamic investment rules?
Still, the easy terms now available in western debt markets mean most American companies don't have to look outside them to gain low-interest financing. "They haven't felt the need to go to a sharia-compliant solution," says Zamir Iqbal, a principal financial officer with the Treasury of the World Bank.
That, of course, could change if the credit markets tighten. And Meyer notes that the East Cameron offering was the latest of several watershed moments for the Islamic bond market. The issue was heavily subscribed, with many western investors, particularly hedge funds, attracted to the diversification and strong asset backing provided by a rated Islamic bond. Meyer says several other western oil and gas companies have already contacted him about floating similar products.
"In many ways, Cameron was a trial balloon" to see if Middle Eastern investors would respond well to a nongovernment, America-based sukuk, says DeLorenzo, who worked on the East Cameron deal before joining Shariah Capital.
There is more at work than simple profit motive for companies like East Cameron Partners. "U.S. companies are always thinking about their bottom lines, but here they are also thinking about goodwill," says DeLorenzo. Embracing Islamic financial solutions could "make a difference in how they are perceived going forward."
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