The inaugural sukuk bond issuance of the Hong Kong government will raise the city’s standing as an international financial centre and open doors for potential Islamic investment into China, said legal experts involved.
“Since Islamic finance is part of the global financial markets, it is important for a leading global financial centre such as Hong Kong to be able to offer Islamic finance products as part of its global offering to local and global investors and issuers,” Davide Barzilai, a Hong Kong-based partner at Norton Rose Fulbright, told China Business Law Journal.
This US$1 billion sukuk issuance marks the world’s first US dollar-denominated Sukuk originated by a AAA-rated government. Norton Rose Fulbright advised the Hong Kong government with a team led by Dubai-based partner Gregory Man, with support from Barzilai. Allen & Overy advised the joint lead managers and co-managers.