Asia Pacific: Ignore at your peril

Author: | Published: 23 Sep 2014

The Hong Kong government's successful sukuk signals that more Asian jurisdictions must take Islamic finance seriously. The $1 billion sukuk al-ijarah, issued under Regulation S and Rule 144A, achieved the tightest-ever pricing for a benchmark-sized sovereign issuance from Asia ex-Japan; investors in the Middle East took 36% of that deal.

The deal demonstrates the demand for Asian assets in the shariah-compliant market. Malaysia remains an Islamic finance centre, but is focused on its...