IslamicFinance.de

Hong Kong sold US$1 billion (RM3.19 billion) of sovereign Islamic bonds in its first-ever issue of the securities, attracting orders for 4.7 times the amount on offer. The dollar-denominated five-year notes were priced at a 2.005 per cent profit rate. The United Kingdom, which along with Hong Kong is rated the highest investment grade, sold sukuk for the first time in June at a coupon of 2.036 per cent. Those notes yielded 1.76 per cent yesterday. The Hong Kong sukuk was priced at 23 basis points above similar-maturity US Treasuries, the narrowest spread ever achieved on a benchmark dollar issuance from an Asian government outside Japan. The city has changed its tax laws to help pave the way for sales of syariah-compliant debt.