London
04 July 2014
Reporter: Catherine Van de Stouwe

Euroclear to provide UK with first Islamic bond


Euroclear UK and Ireland (EUI) is to bring to the market the first UK Soverign Sukuk bond.

In co-operation with the government’s Debt Management Office, the UK will be the first nation outside the Islamic world to bring such a bond.

The £200 million Sukuk bond will primarily be issued in Brussels-based Euroclear and will settle in EUI and Euro Bank from 2 July.

Chancellor of the Exchequer, George Osborne, said: “This issuance of Britain’s first sovereign Sukuk delivers on the government’s commitment to become the western hub of Islamic finance and is part of our long term economic plan to make Britain the undisputed centre of the global financial system.”

“We have seen very strong demand for the Sukuk, resulting in a price that delivers good value for money for the taxpayer. I hope that the success of this government issuance will encourage further private sector issuances of Sukuk in the UK.”

John Trundle, CEO of EUI, said: “We are delighted to provide an issuance, settlement and safekeeping service for this premier UK government Sukuk bond.”

“[The] announcement reinforces our support for the London market as it becomes the major Western hub for Islamic financing. EUI already holds £1.3 trillion worth of gilts on behalf of clients, and these clients have the choice of holding balances in these Sukuk at EUI or Euroclear Bank, our sister international depository.”

“Euroclear Bank has a strong history of providing post-trade expertise in sharia compliant debt – last year Euroclear Bank partnered with Borse Dubai to support asset servicing for our clients purchasing bonds on NASDAQ Dubai’s Sukuk trading platform.”

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