The Hong Kong government sold its inaugural $1 billion five-year sukuk on Wednesday, offering issuers an alternative funding source and investors an opportunity to put cash to work in a fast-growing asset class.
Hong Kong Sukuk 2014 a special purpose vehicle fully owned by the government and established for issuing sharia-compliant securities in international markets sold the Islamic bond, which obtained the tightest pricing ever seen from any Asia ex-Japan borrower.
“Hong Kong has created a new sukuk history,” said a source close to the deal. “Our biggest fear was that the sukuk product will only be attracted by corporates and countries from the Muslim world. What...
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