HK steps up Islamic financing with $1b sukuk

With its intoxicating nightlife and big margin mentality Hong Kong isn't the most likely destination for Islamic financing, but the government of the Asian financial services hub recently underscored its commitment to Islamic funding with the issuance of a $1 billion five-year sukuk.

In contrast, rival financial centre Singapore has never issued a sukuk bond, according to data provider Dealogic. However, Singapore companies such as Swiber and Sabana tapped the Singapore dollar sukuk market in small sizes last year, raising S$39 million and a total of S$150 million respectively.

Hong Kong's Islamic bond, which priced on Wednesday night, is the second such issuance in what the government...