The UK has bolstered its position as a world-leader in Islamic finance by issuing its second sovereign Sukuk.

Clifford Chance has advised the UK Government (HM Treasury and Debt Management Office) in relation to its second sukuk issuance. Clifford Chance’s team was led by Global head of Islamic Finance partner, Qudeer Latif.

The £500 million five-year sukuk issuance marks the UK Government’s second foray into the international Islamic finance market and is the largest GBP denominated sukuk issuance to date.

The UK issued its first sovereign Sukuk in 2014, making it the first country outside the Islamic world to issue sovereign Sukuk and cementing its position as a centre for Islamic finance.

This second Sukuk offering is more than double the size of the first issuance, increasing the supply of high-quality Sharia compliant, liquid assets to the market and supporting the development of Islamic finance products in the UK.

This second issuance attracted high-quality global demand, with orders totalling in excess of £625 million, and was sold to a broad range of high-quality institutional investors around the world.

The profit rate (yield equivalent) on the Sukuk, which matures on 22 July 2026, has been set at 0.333%, flat to the yield on the 1.5% gilt due July 2026.

 

Source Global Legal Chronicle

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