The worst time for global markets may be the best time for Hong Kong’s government to carry out its planned third Islamic bond sale. Aberdeen Islamic Asset Management says the time is ripe for a sukuk. The yield on the city’s five-year Shariah-compliant bonds sold in September 2014 has fallen 32 basis points to 1.56% since February. Sales of dollar sukuk are at an all-time high for this time of year, suggesting there’s appetite for an issue by Hong Kong, rated AAA by S&P Global Ratings.
Racheal Lee Mei Nyee reported on 16 February in The Edge Daily, that Aberdeen Islamic Asset Management Sdn Bhd aims with the new licence to approach retail investors and launch funds, which it could not do under the conventional licence. The company is seeking seed funding from institutional investors first and look at retail funds only later.
Gerald Ambrose is managing director of Aberdeen Asset Management Sdn Bhd.