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UK:
The UK government could potentially be in the process of pricing its
GBP200 million Sukuk issuance. In an original document showed to
Islamic Finance news,
the five-year Sukuk’s profit rate has yet to be determined by the
issuer and the arrangers.
The
Sukuk is floated by an SPV, HM Treasury UK Sovereign Sukuk, with its
obligor being The Secretary of State for Communities and Local
Government, and co-obligor being Her Majesty’s Treasury. The paper is
an unsecured fixed rate, Regulation S Sukuk.
According
to the document, the Sukuk Al-Ijarah is referenced as ‘UKT 1.75% gilt,
maturing on the 22nd July 2019’. This suggests that the
Sukuk has been launched and may be in the midst of achieving the
optimum pricing. At the time of going to press, representatives from
the joint bookrunners were unavailable for comment, however speaking to
industry experts, Islamic Finance news
has confirmed that despite the disparity of the 22nd July
2019 maturity date stated, it is highly likely that the Sukuk will be
issued this week. The Sukuk is issued in denominations of GBP100,000 (US$170,035)
and GBP1000 (US$1,700.35) with a settlement on a ‘T+5’ basis. It is
governed by English Law and will be listed on the London Stock
Exchange.
Structuring
advisor for the debut Sukuk is HSBC, together with Barwa Bank, National
Bank of Abu Dhabi and Standard Chartered as the joint bookrunners. The
Sukuk to be issued by the ‘Aa1/AAA/AA+’ rated sovereign is expected to
conform to all requirements to qualify as high quality liquid assets
and is expected to finally put the issue to bed for the UK’s standalone
Islamic banks.
The
UK Treasury last week conducted a series of roadshows, marketing the
Sukuk to investors in the Middle East, beginning in Kuala Lumpur on the
17th June, moving to Doha on the 18th June and
progressing to Abu Dhabi and Dubai, prior to the final roadshow held in
London on the 20th June.
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