Home › Business › Business News
Thursday, 27 March 2014
A debut sukuk from Hong Kong would help boost its Islamic finance credentials and position itself as a gateway between mainland China and investors in the Gulf and Southeast Asia.
The Legislative Council's bills committee confirmed the bill was passed in an email response to Reuters.
The task of issuing the sukuk now rests with the Hong Kong Monetary Authority under the territory's Government Bond Programme, which has a borrowing ceiling of HK$200 billion ($25.8 billion).
As of February, the programme had 14 listed bonds currently outstanding worth a combined HK$94 billion, with tenors of up to 10 years.
Hong Kong's Sukuk plan comes at a time of increasing competition among financial centres for a slice of Islamic finance business, which is centred in southeast Asia and the Middle East.
A $500 million Sukuk issue would be larger than debut sovereign issues planned by Luxembourg and Britain, which are at different stages of development.
Legal filings describe the proposed Sukuk issuance as "inaugural", suggesting it would not be a one-off like Britain's plan for a 200 million pound ($333 million) Sukuk issue.
Disk drive maker still sees prospects in market
Alibaba's latest gambit in fighting fakes: foster local brands
Tan Chong opens its largest sales, service and spare parts centre
Asian shares got off to a lackluster start Monday
No problem hanging out with George Clooney
Passion and food go hand in hand
Ice cool Kirk wins by one shot at Colonial
Nippon Airways to commence direct flights between Narita and KLIA in September
Restful repose in a capsule
Copyright © 1995-2015 Star Publications (M) Bhd (Co No 10894-D)