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HM Treasury UK gets strong demand for Islamic bonds

Publication Date : 27-06-2014


HM Treasury UK Sovereign Sukuk PLC, a special purpose vehicle wholly-owned by Her Majesty’s Treasury, has received strong demand for its 200 million pounds (US$340.7 million) Islamic bonds offering, having being oversubscribed by more than 10 times and attracting interest in excess of over 2 billion pounds ($3.4 billion).

CIMB Investment Bank, the joint lead manager and bookrunner for the Islamic bonds, said the product was the first offering by a sovereign “outside the Islamic world.”

“The appointment not only recognises our expertise in Islamic finance but it is also a great testament to the stature of the investment banking franchise that we have built and our strong distribution capability in the region and beyond,” CIMB group chief executive Nazir Razak said in a statement.

The deal attracted interest from a diverse group of domestic and international investors.

CIMB said the allocation was well-spread out globally, with 39 per cent of the Islamic bonds distributed to investors in the UK, the Middle-East 37 per cent and Asia 24 per cent.

The deal was priced after a comprehensive roadshow across key global Islamic financial centres namely Jeddah, Riyadh, Dubai, Abu Dhabi, Doha, Kuala Lumpur and London.

The other syndicate banks for this transaction are Barwa Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered Bank, CIMB said.


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