London’s first sukuk: how to make it happen

Author: Gemma Varriale | Published: 31 Oct 2013
  • UK Prime Minister David Cameron announced this week that the UK will become the first non-Muslim country to issue an Islamic bond, or sukuk;
  • The announcement signaled the UK’s intention to become a leading Islamic finance hub, grabbing a slice of the growing Islamic finance industry;
  • But there remain some structural issues to iron out, not least of which is the need to select suitable assets.

UK Prime Minister David Cameron announced this week that the UK would become the first non-Muslim country to issue an Islamic bond, or sukuk. Although the news has proven a much-needed boost to the Islamic finance market, there remain some structural issues to iron out.

The Treasury plans to launch the £200 million sukuk as early as next year. It is hoped that the benchmark issuance, which is significantly smaller than the government’s previously planned sukuk, could be the catalyst to tempt local...


 

 

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