HK steps up Islamic financing with $1b sukuk

The Asian financial services centre continues to pave the way for Chinese issuers to tap Islamic financing with its second sukuk and its first to use an asset-light structure.

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...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222