Photo: The HM Treasury building on Horse Guards Road in Westminster, London, UK, in April 2018. Willy Barton/Shutterstock

Islamic Finance

UK seeks second sovereign sukuk issue in early 2020 – HM Treasury

The government of the United Kingdom plans to issue its second ever sovereign sukuk in early 2020, according to an e-mail from the UK Treasury Spokesperson on Monday (Jan 13) to Salaam Gateway.

“Further details, including on timing, will be made public in due course,” he said.

The UK will begin negotiations with other banks and seek to mandate lead managers shortly.

“The government will be running a further competitive process to appoint lead managers in due course,” said the spokesperson. “Details of the government’s requirements and how to apply will be made available at an appropriate time.”

The Treasury spokesperson reiterated that on November 4 last year the Debt Management Office (DMO) appointed HSBC as the structuring advisor and Clifford Chance as the legal advisor for the upcoming sukuk.

At the beginning of October the Treasury published an invitation to tender for the appointment of structuring banks to assist with the nation’s second sovereign sukuk.

Applications for the tender closed on October 14.

The UK sold its maiden sovereign sukuk, a five-year £200 million ijarah sukuk in June 2014.

The Shariah-compliant debt paid a profit rate of 2.036% in line with the yield on gilts of similar maturity.

Barwa Bank, CIMB Islamic, HSBC, National Bank of Abu Dhabi (First Abu Dhabi Bank) and Standard Chartered arranged the deal.

(Reporting by Hassan Jivraj; Editing by Emmy Abdul Alim

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