Goldman Sachs is facing obstacles to the launch of its first Islamic bond, with some experts warning its structure might breach sharia law.

The bank announced in October that it would offer a $2bn sukuk, securities designed to comply with Islamic law forbidding usury, via a Cayman Islands-registered vehicle listed on the Irish Stock Exchange.

The exotic offering would be the first foray into the market for Goldman, which enlisted Dar Al Istithmar Limited, a UK-based Islamic finance consultancy, to advise it on the structure of the sukuk and check its compliance.

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