Tuesday, 30 November 2021

UK to launch 5-year Islamic bond in coming weeks

The full moon is seen rising over the City of London financial district in London, Britain. REUTERS/Toby Melville

LONDON  – Britain will launch a five-year Islamic sukuk bond in the coming weeks, the United Kingdom Debt Management Office said on Monday, following up on a previous five-year issue which took place in 2014 and raised 200 million pounds ($277 million).

The DMO said HSBC, CIMB Investment Bank, Dubai Islamic Bank, Emirates NBD Capital and Standard Chartered would act as joint lead managers for the syndication.

Britain in June 2014 was the first Western country to launch a sukuk bond, as part of then-finance minister George Osborne’s efforts to make London a hub for Islamic finance.

The bonds use an al-Ijara structure under which rental payments from property replace the interest payments from a standard government bond. ($1 = 0.7216 pounds)

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