Hong Kong issues $1 billion Sukuk

The order book was $4.7 billion for the five-year deal which represents Hong Kong’s first Sukuk issuance. The Sukuk was priced at 2.005% profit rate.

By investor type, 11% was distributed to fund managers, 56% to banks and private banks, 30% to sovereign wealth funds, central banks and supranationals, and 3% to insurance companies. Close to half of the issue was allocated to investors from Asia, while Middle East investors took 36 percent, the U.S. 11 percent and Europe 6 percent.

Hong Kong is attempting to position itself as an Islamic Finance centre and Financial Secretary of Hong Kong, Mr John C Tsang, said “The success of this transaction demonstrates that issuance of sukuk using Hong Kong’s platform is a viable fund-raising option and widely accepted by investors around the world. I hope that the Sukuk issuance will catalyse the further growth of the sukuk market in Hong Kong by encouraging more issuers and investors to participate in our market.”

Full details of the Sukuk can be found in our Sukuk profile section here.