News Column

United Kingdom : BRITAIN to issue Islamic bond or Sukuk

June 16, 2014

Britain will be issuing an Islamic bond or sukuk as the government targets wealthy Middle East and Asian investors.

With this issue the country will be the first Western country to do so.

The five-year bond will likely raise £200million and next week an investor roadshow will be held in Saudi Arabia, Dubai, Abu Dhabi, Qatar and Malaysia.

Other countries to launch a sovereign sukuk includes Luxembourg, Hong Kong and South Africa with plans to tap a pool of Islamic investment forecast to reach £1.3 trillion next year.

The British government targets to place London as a leading center for Islamic finance to help fund public spending.

In the month of January the Treasury selected HSBC for arrangement of the deal and now the syndicate also includes Standard Chartered, Qatar s Barwa Bank, Malaysia s CIMB and the National Bank of Abu Dhabi.

The sukuk will be utilising an ijara structure, a Shariah- compliant sale and leaseback contract.

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Source: TendersInfo (India)

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